What a great time to be a Buyer!

Several changes in the past couple of months from Fannie, Freddie and FHA have made it much easier for first time homebuyers!

For Conventional Mortgage buyers, Fannie and Freddie both came out with 97% mortgages (3% down) for first time homebuyers. Wow! With down payment savings always being a huge hassle, 3% down makes it possible for many buyers to purchase a home sooner than later.

Not to be outdone, FHA also announced that they were going to reduce the monthly mortgage insurance (MI) by .50%, saving homeowners money on their mortgage payment. The new mortgage insurance rate is effective January 26, 2015.

It’s always good to note that FHA does not allow you to drop your mortgage insurance. Conventional financing at 3% down will allow you to eliminate your mortgage insurance once you have paid your mortgage down to 80% (there are some additional requirements for this.)

Down payment and monthly mortgage costs are always big obstacles for those financing a new home. With lower MI for FHA and down payment levels down at 3% from Fannie and Freddie, it makes home buying more affordable and easier.

Don’t forget that these programs allow ” gift money” for the down payment! Thanks Mom and Dad!

It is a great time to buy a new home! Contact me today!