As an alternative to Federal Housing Authority’s (FHA) 3.5% down payment minimum requirement program, Fannie Mae and Freddie Mac have their own low down payment loan products requiring only a 3% down payment. Fannie Mae’s 3% down program is called Home Ready, and Freddie Mac’s version is Home Possible. These programs are great for first time home buyers, as well as anyone looking to purchase a home with as little as 3% down. You do not, however, need to be a first time homebuyer to utilize these programs. In addition, both programs allow for the possibility to refinance current mortgages with as little as 3% equity in the property. Adding to the flexibility of minimal down payment, these products also both offer lower mortgage insurance requirements versus standard conventional products.
To learn more about these products and the advantages they offer, please reach out to your Advisors Mortgage Group Loan Officer today!
Sources:
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