Understanding Proposition 19A component of voter-approved Proposition 19 has gone into effect Thursday, April 1, 2021, that expands benefits for seniors, people with disabilities, and victims of
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Dated: June 4 2018
Home Loan Options for Buyers without A Large Down Payment
Would you like to buy a home but don’t have a 20% down payment? A large percentage of Americans are unable to buy a home due to the inability to save for a 20% down payment. Luckily there are new programs available from Fannie Mae, Freddie Mac and the FHA which make it easier to purchase a home even with a smaller payment and an imperfect credit score.
Fannie Mae offers a program that allows first-time buyers to purchase a home with as little as 3% down. The program is called the 97% LTV options program. In addition, home buyers will have to undergo mandatory pre and post purchase education and delinquency counseling in order to qualify.
Two other programs available to consumers are Fannie Mae’s “My Community Mortgage Program” and Freddie Mac’s “Home Possible Program”. These two programs are targeted to individuals with lower income. Both programs allow the buyer to take advantage of lower interest rates with a lower private mortgage insurance.
There is also the FHA program which requires a 3.5% down and credit scores of 580 or higher. This program requires buyers to pay a mortgage premium payment of 1.75% of the loan in addition to private mortgage insurance at a cost of .85%
If you are a first time home buyer and need help getting pre-qualified or just want to see if a loan is available for you, please call me at 818 262-0924. I’m here to help!
Click the “Finance” tab on my website and hit the “Get Started” tab to fill out an application on line.