4 Mortgage Options with Low Down Payments

Too many consumers think they can't buy a home because they don't have thecash to put 20 percent down on the mortgage. In fact, it's safe to say that thedown payment is one of the biggest obstacles to home buying today. And, itdoesn't have to be. The following are four mortgage options that don't require large down payments: 1. Fannie Mae's 3-Percent-Down Mortgage Launched a few years ago, Fannie Mae's Conventional 97 is a brilliant alternative tothe FHA-backed loan. In fact, it is "among the most in-demand programs fortoday's homebuyers," according to Dan Green at TheMortgageReports.com. Conventional 97 is what FHA used to be -- ideal for both the first-timer and repeathomebuyer who lacks a large down payment. While borrowers are still required topurchase mortgage insurance, the premiums "are usually less expensive thanthose of comparable FHA home loans," according to Green. Best of all, according to Tim Lucas, editor at MyMortgageInsider.com, borrowerscan qualify with scores as low as 620 and "gift funds can be used for downpayment and closing costs." 2. Freddie Mac HomeOneSM Loan If your preferred lender isn't among those conventional lenders approved to offerthe HomeOne loan from Freddie Mac, it's time to look for another lender.Like Fannie Mae's loan, it allows first-time homebuyers achieve the dream ofhomeownership. Features include: no income limits, no geographical limits and it allows for thepurchase of a single-family home, condo or townhome. Buyers are required to have at least 3 percent for a down payment and a creditscore of at least 620 and first-time buyers, borrowers must agree to attend abuyer education course. 3. Freddie Mac Home Possible® Freddie Mac offers an alternative to the HomeOne loan and that's the popularHome Possible mortgage. This program is a deal for your lower income buyerswho lack a big down payment and require "flexible sources of funds." These sources can be family members, employer assistance "secondary financingand sweat equity," or a combination of these, according to Freddie Mac's website.Your buyer's qualifying income (on an annual basis) cannot exceed 80 percent ofthe AMI. There's a 3 percent down payment, but unlike other similar programs, a borrowercan quality for 105 percent LTV with Freddie Mac's Affordable Seconds®. 4. HomePath Ready Buyer™ ProgramAnother Fannie Mae program, HomePath Ready Buyer, offers 3 percent downpayment assistance for qualified borrowers who agree to participate in an onlinehomebuying course and then purchase a HomePath property. "The request for closing cost assistance must be made at the initial offer in theHomePath Online Offers system," according to information on the HomePathwebsite. The buyer must not have owned a home within the past three years, they mustagree to reside in the home as their primary residence and take possession within60 days of closing. There are plenty of other programs out there that will help you purchase a homewithout a huge down payment. Reach out to me for more information andassistance in deciding which program is right for you.   

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Are people BUYING & SELLING HOMES post-pandemic?

  That's the question on a lot of people's minds lately. The answer is: YES. The housing market is alive, well, and thriving. In fact, buyers in some cities, such as Boston and Fort Worth, are facing bidding wars. Let's take a look at the current state of the national housing market.   BUYING A good gauge of the number of homebuyers in the market is the number of mortgage applications submitted. The volume is up 9% over this time last year, according to the Mortgage Bankers Association. This, by the way, is the sixth consecutive week of an increase in mortgage applications. Much of this is, no doubt, spurred by the all-time low mortgage rates.   SELLING Most people we speak with are surprised to learn that home values haven't tanked during the pandemic. In fact, values were up 4.4% early in the pandemic (March), and we continue to see increases. As restrictions ease, home showings are vastly easier. There are still precautions in place, but a Realtor.com survey shows that nearly 60% of home sellers say they would have no problem holding an open house. It sounds odd, but if you are planning on buying or selling a home, this is truly the ideal time. Interest rates are at historic lows, allowing you to buy more home for the money. For sellers, the timing is perfect. There is still an inventory shortage, so those who put their homes (in good condition) on the market end up selling quickly and for top dollar    

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