You can. The 3% down payment option is similar to existing conventional loan programs and can help meet the needs of first-time home buyers in the following ways:
- The mortgage provides the security of a fixed rate loan.
- The property can be a one-unit single family home or condo.
- At least one borrower has not owned a home in the last 3 years.
- The property will be the new owner’s primary residence.
- The loan amount is below $453,101
According to the National Association of Realtors, the average home price is around $250,000. The 3% down conventional loan is a great way to expand home buyers’ purchasing power.
According to Fannie Mae’s Loan Level Price Adjustment (LLPA) graph, borrowers can have a score as low as 620 to qualify, some borrowers will receive the same or lower rate for a 3% down loan compared to those with 20% down.
But these loans will come with rates only about a one-eighth to one-quarter of one percent higher than rates available to borrowers putting 5-10% down and the time it takes to save an extra 2% for the down payment could mean higher home prices and tougher qualifying down the road.
Are you ready to find out your options? Try our Digital Application called Mortgage in a SNAP
Subject to credit approval and certain restrictions may apply. Equal Housing lender NMLS# 129386 This is not a commitment to lend. Mortgage 1 Inc. is not affiliated with your current lender. Minimum and maximum loan amounts apply. All approvals are subject to underwriting guidelines. This is not a commitment to lend. Restrictions apply. All Rights Reserved. Mortgage 1 Inc. is not acting on behalf of or at the direction of USDA, Fannie Mae or Freddie Mae or the federal government. (5.00% Interest rate has a corresponding Annual Percentage Rate of (APR) of 5.12% with a 180-month term Rates effective 6/01/2018. Rates are not guaranteed and may change daily. APR is based on a $100,000 loan amount/ Max Loan amount is dependent on your county limits. Rates assume 20% down) APR’s and loan amounts may vary at any time subject to equity, qualifications and market conditions. Minimum and maximum loan amounts apply. The loan information used in connection with this offer was derived from public records. There are no prepayment penalties. Depending on the type of loan the rate may vary after the close. Mortgage 1, Inc. is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age (provided you have the capacity to enter into a binding contract), because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. The federal agency that administers our compliance with these federal laws is the Consumer Financial Protection Bureau P.O. Box 4503 Iowa City IA 52244