Metro Detroit

3% DOWN IS BACK

December 13, 2014

Fannie and Freddie on Monday announced guidelines for a new low down payment program for first time buyers (buyer’s who haven’t purchased in at least 3 years, among other things).  This can be great news for buyers who have high combined incomes but little to put down….that is if you want to have anything in savings after buying your house.  There’s nothing like a beautiful new home with bedsheets hanging in the windows….

Some guidelines include:

  1. must be primary residence
  2. must be a first time buyer (see above)
  3. must provide full documentation of income and credit history
  4. minimum FICO is 620
  5. buyers must pay mortgage insurance as part of their payment

Some will argue low down payment loans aren’t good for the overall market, others will argue they are.  More access to credit can raise demand thus raise prices and results in more market activity.  Want a new home but don’t have a lot to put down?  This new program is one of many options out there.  There are even ways to avoid paying that annoying mortgage insurance which does no good for anyone – just ask us how.  Connect with us today and we’ll get started!

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