Buy A Home With 3 Percent Down In Palm Springs CA
Fannie MAE and Freddie MAC have announced their plan to back home loans with loans that have as little as 3% down. That is very big news. The announcement came right on the heels of implementing less rigid lending standards. All this is designed to to give many of citizens with less-than-perfect credit a better chance at buying a new home.
The Freddie program is titled Home Possible Advantage (Fannie’s is yet to be named).
Here are a few Key Facts to Freddie MAC’s Home Possible Advantage:
- Home Possible Advantage offers qualified low- and moderate-income borrowers a conforming conventional mortgage with a maximum loan-to-value ratio of 97 percent.
- Home Possible Advantage mortgages can be used to buy a single unit property or for a “no cash out” refinance of an existing mortgage.
- First time homebuyers must participate in an acceptable borrower education program, like Freddie Mac’s CreditSmart®, to qualify for Home Possible Advantage.
- Home Possible Advantage mortgages are available as 15-, 20-, and 30-year fixed rate mortgages.
The plans are designed to fit first time homebuyers and low to moderate income individuals and families who seek a fixed rate mortgage. The plans reduce the amount of capital required to qualify in exchange for attending pre-purchase counseling (credit) and the usual qualification processes.
The counseling will teach homebuyers the financial impacts of buying a home, and inform them of the variables such as property taxes, insurance, and upkeep.
It’s important to learn these things and although to some they sound basic, many first-time buyers really have no idea about the many hidden home ownership costs. And that goes to things like having to buy garden equipment, storage shelves, organization accessories and so much more.
Note: We see this often and spend lots of time educating our buyers about such basic things. We want our buyers to be fully aware of what lies ahead so that they will fully enjoy their new home.
So to summarize: it’s easier now to pull together the financing required to buy your first home. You can Buy A Home With 3 Percent Down as long as you go through the usual qualification process with your lender.
And remember, first-time homebuyer is one who has not purchased for more than 2 years.