New Low Downpayment Mortgage Program
Fannie Mae and Freddie Mac announced a new mortgage program. The new program will finance up to 97% of the appraised value of a home. This would allow home buyers to purchase a new home with only a 3% down payment. If a home buyers credit is less than perfect, FHA also offers a program with only a 3.5% down payment.
If a home buyer is a veteran, then a VA loan is a wonderful option. VA loans offer 100% financing, and do not require mortgage insurance. Also, VA loans usually offer interest rates somewhat below those of a conventional loan.
USDA loans are offered by the US Department of Agriculture. Many homes in our rural area qualify for USDA financing. USDA loans will finance up to 100% requiring no down payment for many buyers. They are typically for a first-time home buyer, or a home buyer moving from a mobile home, for instance, to a nicer stick-built home. There are also income limits for these loans.
For home buyers interested in purchasing more expensive homes (over $417,000) there are new, lower rates for “jumbo loans”.
If you are interested in purchasing a first home, moving into a larger home, or maybe you are retiring and want to downsize your home, we can put you in touch with a loan officer who can assess your situation, and suggest the perfect loan for you.