Mortgage giants Fannie Mae and Freddie Mac announced on Monday that they would begin offering programs for 1st time home buyers that will require down payments as low as 3%.
Through it’s My Community Mortgage program which starts this week Fannie Mae will offer this new program to qualified borrowers who have a minimum credit score of 620. Freddie Mac’s program, Home Possible Advantage begins in March.
These conforming conventional loan programs will offer 1st time buyers an alternative to FHA programs that offer a 3.5% down payment options but have the disadvantage of higher cost mortgage insurance.
These programs are in response to the housing industry’s concerns that tightening credit standards and higher down payment programs that have sidelined many 1st time home buyers. Saving sufficient money for a down payment has often been cited as a significant obstacle for 1st time home buyers.
Wallingford PA Real Estate – Wallingford, PA 19086
