Updated: Nov 21, 2019
Fannie Mae’s 3% down programs - Conventional and HomeReady - provide options for new homebuyers having difficulty producing a larger down payment. Each of these fixed-rate, 30-year mortgages are secured by single-unit principal residences - which include qualifying condos, co-ops, PUDs, and MH Advantage homes. Although it's not the most common, some qualified borrowers with an existing Fannie Mae loan may wish to apply for a Limited Cash Out Refinance (LCOR).
Qualifying for the loan is a straight-forward process for borrowers who meet the terms. Fixed rate loans under the conventional limit ($484,350) for eligible single-unit primary residence usually close in about a month for first-time homebuyers with a credit score above 680.
Note: Borrowers can qualify with 620 credit score but credit scores lower than 680 may not receive all features of the loan
Fannie Mae’s HomeReady 3% down program is intended to help households that earn less than 80% of area median income by providing a few additional benefits, given additional requirements are met.
Sovereign Mortgage Investments, Inc.
Rates, regulations, and loan conditions can and do change. The information presented in this article was accurate, to the writer’s knowledge, as of 8/15/2019. Consult your Sovereign Mortgage Investments Inc, adviser to see if rates, regulations, and loan conditions have changed.