A new “Low Down Payment” program for First Time Home Buyers has been rolled out by Fannie Mae.
The Fannie Mae 97% loan to value, low down payment program identifies a First Time Home Buyer as someone who has not owned a home in the last three years in order to obtain a mortgage with only a 3 percent down payment. With this 3% low down payment program compared to FHA’s 3.5 percent down payment, many borrowers can now purchase with less money using the conventional loan. In addition, conventional loans do not need the 1.75 percent UFMIP/up front mortgage insurance premium that gets financed into your loan like an FHA loan requires. The savings can be real when spread out over the life of the loan.
Here’s a few facts about the new low down payment 97% LTV program:
- First time home buyers * no home ownership in the past 3 years *
- No upfront mortgage insurance. FHA requires it
- Mortgage insurance can be canceled when your equity exceeds 22%
- 30 year fixed term
- Single family home attached/detached
- Home ownership counseling must be completed as part of qualifying
Would you like more information on the 3 Percent Low Down Payment Program for First Time Home Buyers? Give us a call at 321.723.6206 for your free, no obligation mortgage consultation. Or go to this link and hit quick quote for quick service. www.themortgageguyfl.com