Mortgage Down Payments As Low As 3 Percent!

Fannie Mae and Freddie Mac Swim Against the Tide with 3% Down Loans.

If you or someone you know is thinking about purchasing a home, contact our Buyer Specialist today to get started! 

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Recently, Fannie Mae and Freddie Mac announced plans to begin backing home loans with down payments as low as three percent.  This move came just days after the mortgage giants implemented less rigid lending standards in order to give Main Street citizens with less-than perfect credit a better chance at homeownership.  According to The Association of Mortgage Professionals (NAMB), it seems the lending industry is opening its arms to the millennial generation, too many of whom have yet to own their first home.

The new programs – Freddie Mac’s Home Possible Advantage and Fannie Mae’s as yet unnamed – are tailored to first time homebuyers and low – and moderate – income individuals who finance a fixed-rate mortgage.  In these cases, they may be approved for a loan without the capital required to make the traditional five percent down payment.  In exchange for the lower down payment, the applicants must be able to demonstrate their ability to repay their loan, secure mortgage insurance, and attend pre-purchase counseling.

According to Don Frommeyer, CEO of NAMB, the lower down payment requirements should help drive millennials into their first homes.

“I applauded Fannie and Freddie for loosening the lending standards this month,” says Frommeyer.  “This is excactly what our industry needed to propel millennials into homeownership for the first time and to keep Main Street growing and thriving.”

Frommeyer is a big fan of the required loan counseling, as it extends well beyond the scope of educating first-time homebuyers what it means to be responsible for a mortgage.  Those who attend can expect to learn, among other things, the financial impact of variables such as property taxes, insurance, and upkeep associated with homeownership.

“When you purchase your first home, sure it’s important to understand the terms and your ability to make the monthly payments,” says Frommeyer.  “But there are countless factors that young people forget to consider.  You need to buy a lawn mower, and bags, and a snow shovel, and a hose.  You’re no longer responsible for just the inside of an apartment.  And this loan counseling prepares people to look at the bigger picture.  I’ve seen people walk away from these seminars with a whole new outlook. It’s really good stuff.”

If you’ve been thinking about buying a home and want to:  1) beat the spring rush and 2) learn and take advantage of low down payment or other loan programs, call us at 404-729-1133 or email   melissa@redrobingroup.com or simply send us an inquiry here on the website — we’ll help you learn more about the home buying process.  A simple discovery phone call or email could provide you with helpful information to get you started on the road to home ownership!

posted: Jan 13, 2015 | No Responses

Posted by:  Wakamo & Associates

Melissa Wakamo and her dynamic team of agents and support staff provide buyer and seller clients with exceptional service and proven results. Since the start of her real estate career in 2004, Melissa has proven to be a true advocate for her clients and has consistently performed in the top 1% of agents

“When I started my real estate career, I wanted to work in my local community and get to know my neighbors. Now, I realize how important that local expertise is to our clients. At Red Robin REALTORS®, all of our agents are specialists in working with buyers and sellers in Atlanta’s intown neighborhoods.”

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