3% Down Payments May Be Game Changer

I have been getting a lot of questions about this new program lately, so I thought I’d elaborate on it a bit. Historically Conventional loans have required 5% down, with FHA only requiring 3.5%. Lately the issue with FHA is the fact that it now requires “life of the loan” PMI, making it far more expensive than a Conventional loan. This new program from Fannie and Freddie will allow buyers a lower down-payment option, while maintaining affordability of the life of the loan. It will have PMI which is based largely on the buyer’s credit score, but it will also be removable when the buyer reaches the 20% equity mark. For more information please reference the article attached, and contact us with any questions you have.