3% down payment, are you eligible?

Many first-time homebuyers may be in a situation where they do not have substantial savings, but if you want to find your own home, can you buy a home with less than a 20% down payment? The answer is yes. Both Freddie Mac and Fannie Mae offer a 3% down payment.

The banks we cooperate with have very favorable interest rates and have selected the lowest mortgage insurance. For applicants who only put 3% down payment, they can also get the same interest rate of 20% down payment, and in some cases, the interest rate will be lower.

To promote sustainable and equitable access to affordable housing, on Oct. 24, 2022, FHFA announced targeted changes to the GSEs’ pricing by eliminating upfront fees for certain borrowers and affordable mortgage products. This Lender Letter provides details on the implementation of the changes FHFA directed lenders to make to the loan-level price adjustments (LLPAs).

We highlight the following two types of loans that are eligible for LLPA waiver. In the case of an LLPA waiver, applicants can get lower loan interest rates.

1. HomeReady® and HomePossible® Loans

• Not limited to being a first home buyer

• Income at or below 80% of the applicable area median income (AMI).

2. Loans for first-time homebuyers

• At least one borrower on the loan must be a first-time homebuyer.

 • Total qualifying income is at or below 100% of the applicable AMI for non-high-cost areas, and 120% for high-cost areas.

Don't you think that this median income will limit many people? Absolutely no! For example, in Maryland Montgomery County, the area median income is $140,500, so the above two loan products can help a vast number of people.


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The purpose of purchasing a house should only be owner occupied. Housing types include detached houses, townhouses, or apartments.

Feel free to contact us at any time to receive free consultation, get a pre-approval letter, and send you to the closing table quickly.