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What qualifies us to use a 3% down on a conventional loan instead of a 5%?

by jamilehp26 from Bloomingdale, Ohio. Mar 8th 2017 Reply


Ralph Richard Guertin (ralph@absolutelowrates.com)
#135 ranked lender in Florida - 644 contributions

Hi, nothing different basically the same items, income, credit ..etc..

Mar 8th 2017
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Sara Deere (Saraloveshomeloans)
#1 ranked lender in Kansas - 516 contributions

The 3% down payment Conventional program is a Fannie Mae program called Home Ready. You can find out a lot of information about the Home Ready program by just going to www.fannie.mae.com/homeready. The 5% to less than 20% will have you paying mortgage insurance payment built into the loan. 20% or more down payment for a Conventional loan program, means no built in mortgage insurance payment.

Mar 8th 2017
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,045 contributions

3% down is only for first time home buyers.. This is defined as someone who has not owned a home in the past 3 or more years.. if you are married, only one of the couple need to meet this stipulation to qualify for 3% down.. FHA is 3.5% and there is no FTHB stipulations.. VA is zero down,, but you must have VA benefits available to you or your spouse, and USDA is also zero down, but you must be purchasing a home in a USDA defined area. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Mar 10th 2017
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