New Fannie Mae Guidelines now allow for 3% Down Payment
Update on recent changes to Fannie Mae guidelines, now allowing a down payment of just 3% for many borrowers. This is a significant reduction in the previous 5% minimum and even lower than the current FHA 3.5% minimum.
The interest rates and monthly payments are also very attractive, even better than FHA. We can get the payment even lower by structuring the loan without a monthly mortgage insurance payment.
Other key points include:
- Only 3% down payment
- Gifts allowed for down payment
- At least one borrower must be a first-time homebuyer. (Have not owned a home in 3 years)
- One-unit single family owner occupied homes only
- Homebuyer education and counseling class required for certain situations.
We have studied these new guidelines carefully to begin processing new applicants immediately. If you are working with buyers who are struggling to meet the minimum down payment, or are looking at a FHA loan due to its lower down payment, please contact me. I can also help explain the options for refinancing existing loans with higher LTV’s.
I would love the opportunity to visit with your prospects and explain the advantages of this new program and show them the lower monthly payments this program makes possible. We will keep you posted on any additional updates on this new announcement.
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