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Joe Metzler, MLO. NMLS #274132

3% Down Payment Assistance Loans still available

Tuesday, October 22, 2013 - Article by: Joe Metzler, MLO. NMLS #274132 - Cambria Mortgage - Message

Now that Fannie Mae is ending 3% down program. Are there other low down payment options besides FHA?

The good news is YES!

Once Fannie closes their 97% LTV door, many state Housing Finance Agencies will still continue to offer 97% programs, and it's still a much better option for many buyers than the now grossly overpriced FHA loan. Check with a good loan officer in your state for what is available in your area, but here in Minnesota, we have a great program available through the Minnesota Housing Finance Agency, that should be similar to what is available in other states.

  • 3% down payment
  • Only 1% of the down payment must be the buyers own funds
  • The remaining 2% down payment (3% total) & all closing costs can be gifted or paid by an approved community second or down payment assist program.
  • Reduced mortgage insurance - Only .18% of the loan amount versus 1.35% of the loan amount for FHA
  • No pricing adjustment for low credit scores. Someone with a 660 gets the same rate as someone with an 800 score.
  • Homebuyer education classes required

As this is a bond down payment assistance program, there are additional income and other eligibility requirements.

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