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New Mortgage Options For The First-Time Home Buyer

By
Real Estate Agent with The Pennybaker Team

In a previous blog we discussed mortgage rates and what that means to people looking to make a home purchase in 2015. There is more good news, this time out of Fannie Mae. If you’re not familiar with Fannie Mae, it is a government entity that was created to help middle income Americans with their home loans by offering the bank a guarantee on their loans, thus making a bank more willing to take a risk on a borrower because they know that if the homeowner defaults, Fannie Mae will cover the loan. The true name of Fannie Mae is FNMA or the Federal National Mortgage Association. Along with its “sibling” organization Freddie Mac (FHLMC or Federal Home Loan Mortgage Corporation), they guarantee roughly half of the mortgages in the US.

Fannie Mae Fixed Program

This new program will benefit many first time home buyers. Although there are many details, here are a few quick bullet points that may help you decide if you may qualify and can make your home purchase earlier in the year and take advantage of lower interest rates.

·         One borrow must be a first-time home buyer – that means that one of the people on the loan cannot have owned a home in the last three years.

·         The Loan to Value can be as high as 97% - meaning that if you have as little as 3% to put down on your new home, you may qualify.

·         Minimum Credit Score needs to be at least 620 of all borrows

·         Condos and other one-unit primary residences qualify – loan must be taken on your primary residence as defined by the state you are borrowing in.

Every borrower has different circumstances so be sure to check with your lender to see if you qualify.

Fannie Mae MyCommunity Mortgage

This lower down payment program also extends to multi-unit owner-occupied properties as well. Most of the basic qualifications and rules are the same. Some of the differences are in the median income limits and mortgage insurance requirements. Speak to your mortgage broker if your purchase falls under this category.

 

These new programs will make it easier for many people to become first-time homeowners. If you think you may qualify, reach out to a mortgage professional and ask questions, tell them about your situation and what you have saved and what you are wanting to purchase. If you don’t have a mortgage broker, speak with your professional Realtor and ask for a referral to a broker who can help you with a Fannie Mae backed loan. 

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Real Estate Info for Bradenton, Parrish, Ellenton and Lakewood Ranch, FL

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Office: 941-747-4105 •  Google Voice/Text: 941-882-0132

  www.ThePennybakerTeam.com 

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