As most of you are likely aware by now. Fannie Mae and Freddie Mac have just released information on the new 3% down conventional loan programs. As with most mortgage programs the devil is in the details. Here is a quick summary of the differences between the programs:
Fannie Mae:
- Two programs exist.
- Standard 3% down Program (no income limits apply)
- My Community Mortgage 3% down program (income limits apply)
- No matter what program selected, at least one of the borrowers must be a first time homebuyer (cannot have owned a home in the last 3 years).
- The income limit for the My Community Mortgage in most areas of the country is 100% of the median income (can be found by going to this link)
- At least one client must attend a first time homebuyer class if clients are using the My Community Mortgage (program with an income limit)
- Clients using the My Community Program are eligible for a reduced mortgage insurance rate (benefit to meeting the income limit)
- All of the down payment can be a gift.
- Can be used to refinance an existing Fannie Mae loan
- Available December 15th, 2015
Freddie Mac:
- Only one program
- Subject to the same income limits as the Fannie Mae My Community Program
- At least one borrower must attend a first time homebuyer class when ALL of the borrowers are first time homebuyers.
- Clients DO NOT have to be first time homebuyers but must meet the income limits in order to be eligible.
- All of the down payment can be a gift.
- Available March of 2015
As a direct seller to Fannie Mae and Freddie Mac, we will begin offering these programs as soon as they are available. We are able to lend in a number of states. Please contact us for more information. We can be reached via our website at www.danmoralez.com or at 616-931-4629.
Comments(19)