There are several new low down payment loan programs that can lead new home buyers down the path to be able to afford the home of their dreams despite slightly higher rates. Along with other lending experts, ABBA First Mortgage agrees that the combination of loan programs designed to reduce up-front costs and technology that speeds the loan process can save consumers significant cash. “We’re seeing an increasing number of people choose low down-payment loans…” said Michael Fratantoni, chief economist for Mortgage Bankers Association. “…and take advantage …of using gift funds for down payments, too, although they’re still being very careful to document the source of the money.”
These days, many buyers can choose from an array of programs offering down payments as low as zero percent (VA and Rural Housing Loans). The “Home Possible” and “Home Ready” programs from Freddie Mae and Fannie Mae allow first-time buyers with an income at or below the median for their area to buy with a down payment of three percent. The down payment funds can be a gift from a relative or an employer, or come through a down-payment assistance program. Both Fannie Mae and Freddie Mac also have guidelines for loan programs with a three percent down payment that are available to all first-time buyers, regardless of their income.
Even if your credit scores are lower than what was the “norm”, our lenders are working with to help our clients with scores in the mid 500’s improve their credit report to the point that they too can be homeowners with a little bit of time, effort and money. It is so well worth it when you think of all the money that you’ll save from throwing away on rent. Please give ABBA First Mortgage a call today and alloe us to find the right program for you! 910-332-0650 Ask for the owner, Rich, and I will personally take care of you.