Hello, homebuyers! Are you considering purchasing a home but worried about affording a large down payment? The Fannie Mae 3% down mortgage loan might be just what you need, especially if you meet certain criteria.
Who qualifies for this loan? It’s primarily for responsible buyers who can manage a mortgage but struggle with a substantial down payment. Of course, there are additional underwriting requirements and income documentation needed, and we’re here to assist you in determining your eligibility.
Let’s break down the requirements:
- The property must be a single-unit (including townhomes, condos, co-ops, and PUDs) and cannot be a manufactured home.
- It must be your primary residence.
- The loan needs to be a fixed rate mortgage; adjustable rate mortgages (ARMs) do not qualify.
Can you use gifted funds or grants for your down payment? Yes, gifts from relatives, grants, or other sources are acceptable for covering your down payment and closing costs. Be sure to explore down payment assistance options in your area as well.
Regarding mortgage insurance, if your down payment is less than 20% of the home’s purchase price, you will be required to pay Private Mortgage Insurance (PMI). This is typically part of your monthly mortgage payment. The good news is, unlike FHA loans, you can cancel PMI after achieving 20% equity in your home.
For those considering an investment property or a second home, note that the 3% down payment option is exclusive to primary residences. Higher down payments are required for investment properties or second homes. Also, the 3% down payment is not applicable to ARM loans. This option is only available for fixed-rate mortgages.
If the Fannie Mae 3% down mortgage loan aligns with your home-buying goals, Ideal Lending is here to help. We are a knowledgeable mortgage lender in Palm Beach County, Florida, ready to assist you in navigating the home-buying process with professionalism and expertise. For detailed information and guidance, please give us a call. We look forward to hearing from you!
Ideal Lending LLC is not acting on behalf of or at the direction of the federal government, and this offer is not being made by an agency of the government. Source: www.fanniemae.com.