Many first time home buyers can afford the monthly cost of mortgage, but come up short on the cash requirements for a down payment. That may change with the help of new government programs that will offer 3% down-payment loans to qualified borrowers.
Fannie Mae’s My Community Mortgage program, open to first-time buyers with a minimum 620 credit score, has already begun. Freddie Mac’s Home Possible Advantage Program, available to all qualified buyers, begins in March, 2015. A bonus with both programs is that they do not require buyers to pay a Mortgage Insurance Premium. Traditionally, a down payment of less than 20% would require mortgage insurance.
If you’ve been struggling to stash cash toward a down payment, read this article by Alan J. Heavens, published in the Philadelphia Inquirer. Then, check out the beautiful possibilities for making your first home a Sal Paone Builder home.
