If you fall into either of these categories, read on for details.
Low Down Payment Options for First-Time Buyers
Let’s start by giving you the lowdown on a new low down payment loan for first-time home buyers.
Under a new program from Fannie Mae, first-time home buyers can now qualify for a mortgage with a loan-to-value ratio (LTV) between 95% and 97%. This means you can now purchase a home with as little as 3% down. This applies to conventional loans with terms between eight and 30 years.
There are a couple of restrictions on qualification:
- The home must be a single-family unit.
- At least one client on the loan must be a first-time home buyer.
- You can’t have had an ownership interest in a residential property within three years prior to the date of purchase.
Next to VA loans, which aren’t available to everyone, the new program may represent the most compelling option for first-time home buyers not looking to bring a large sum to the closing table.
If this sounds good to you, you might get started by checking out our First-Time Home Buyer’s Guide.
The new program also enables refinances of between 95% and 97% LTV when the loan being refinanced is owned by Fannie Mae. It’s also only for clients who don’t qualify for a HARP refinance.
This could enable clients with limited equity in their homes to refinance and jump into a lower rate with a shorter term.
Do either of these options appeal to you? Where do you want to purchase a house? What will you do with the money you save by refinancing? Leave us a note in the comments.
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