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

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

Down Payment Assistance MN - with MHFA Loans from Mortgages Unlimited, St Paul, MInneapolis, MNThe 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. Similar guidelines should be available in most 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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