In today’s competitive market with soaring home prices, buyers struggle to come up with a hefty down payment and closing costs needed to buy a new home. Now, with the Fannie Mae HomeReady™ and Freddie Mac HomePossible® programs, home buyers have two fantastic options to buy a new home with as little as 3% down payment using Conventional financing.
Here’s what you need to know:
o Available on Purchase Transactions, including Condos.
o NO First-Time Buyer Requirement.
o Conventional 30 Year Fixed loan at excellent rates – often better than a “standard” Conventional 30 Year loan.
o Reduced PMI (private mortgage insurance) rates – lower than FHA, Plus No FHA Upfront MI (mortgage insurance)!
o Income Limits apply, depending on location of Subject Property.
o No Income Limit if property is in a designated Low-income census tract.
o Gift Funds allowed for Down Payment.
o Conventional Appraisal used.
o Special Feature: Expanded DTI Ratio allowed with acceptable “Non-borrower Household Income”
o Homebuyer Education required – Available online, and often FREE!
Bottom Line: This is an excellent Conventional Financing option, which requires less down payment than FHA and typically beats FHA when comparing both monthly payment and Cash to Close!
If you’d like to check your eligibility for either program, please give Brian Murphy at MVB Mortgage a call. 202-751-2153. I can help you when you’re ready to start searching for your perfect home. Call or email anytime: 703-963-0142, 301-320-8349 or email@example.com.