3% Down-Payment Loans Help First Time Homebuyers

Filed under Buying a home, Home Buyers on Jan 02,2015 | Tagged in: first time home buyers, first time homebuyer, first time homebuyers Montgomery County

Many first time home buyers can afford the monthly cost of mortgage, but come up short on the cash requirements for a down payment. That may change with the help of new government programs that will offer 3% down-payment loans to qualified borrowers.

Fannie Mae’s My Community Mortgage program, open to first-time buyers with a minimum 620 credit score, has already begun. Freddie Mac’s Home Possible Advantage Program, available to all qualified buyers, begins in March, 2015. A bonus with both programs is that they do not require buyers to pay a Mortgage Insurance Premium. Traditionally, a down payment of less than 20% would require mortgage insurance.

If you’ve been struggling to stash cash toward a down payment, read this article by Alan J. Heavens, published in the Philadelphia Inquirer. Then, contact Vanguard Realty Associates to help you find your perfect first home!