3% down loans are back (for some)

by

blog-author-clayjeffreys3

Fannie Mae has brought back 3% down payments for some home buyers. As of the date of this post, Fannie Mae is allowing the change starting next week, and lenders are currently updating their systems to accommodate the change. Soon home buyers can qualify for a purchase with as little as 3% down.

What is the catch for buyers? The 3% minimum down payment is limited to first time home buyers purchasing a primary residence. A first time home buyer is defined here as either:

  • a buyer who has never owned a property
  • a buyer who has not owned property in the past 3 years

Refinances are also included in the change. Current home owners can refinance with as little as 3% equity to cover closing cost rolled into the new loan (5% equity is required if closing costs are not rolled into the new loan).

Are you a first time home buyer with little down looking to buy a home? Are you looking for the smallest down payment available without having to use an FHA loan and pay ridiculously high up front and monthly mortgage insurance payments?

If the answer is yes to either of those questions, and you are buying the home in the state of Georgia, I can help you get started! Contact me today, and I’ll get you prequalified and on your way to owning your first home.

footer_clayjeffreys4

Advertisements

Tags: , , , , , , , , , , ,

One Response to “3% down loans are back (for some)”

  1. FHA lowering mortgage insurance | The Mortgage Blog Says:

    […] The 3% conventional loan is only available to first time home buyers. With only a 3.5% down payment, they would qualify to buy the home and not get hammered on the monthly mortgage insurance payment. […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: