New Option for Conventional Loans;
Conventional loans offer options with lower down-payment requirements. Fannie Mae and Freddie Mac both have programs for home buyers who meet the qualifications.
Conventional loans require anywhere from 3-5% down-payment depending on the specific program. Fannie Mae and Freddie Mac both offer a first time home buyer program which will allow only 3% down for qualified borrowers and USA Mortgage will be granting 2% of that which will make it more affordable for first time home buyers.
Conventional loans will have PMI if there is less than 20% downpayment/equity. There are no up-front fees added to the loan and the PMI varies based on credit scores, the amount of down-payment and other factors. Buyers will have options of doing the monthly PMI or buying up-front via lender paid MI or borrower paid MI.
Some of the characteristics of 3% down Home Loans:
- There are income limits per average median income of counties
- Borrowers don’t have to be first-time homebuyers.
- Properties must be owner-occupied.
- Borrowers can’t own any other property.
- Homeowner education required.
We will continue to find ways to help create more homeownership and improve our community. Please call or email USA Mortgage office today to get more information on this programs.