St. Louis Real Estate Blog

FHA Loan Change This Could Help Buyers

January 15th, 2015 3:00 PM by Melanie Mitchell - Team Lead/Listing Specialist

Fannie just released the 97% loan for FIRST TIME BUYERS again.  This has been unavailable for about 3 years and now it is back!  Conventional loan with 3% down (can come from a gift) but FNMA wants decent credit and 2 months of reserves.  All lenders will roll this out soon, but since we sell direct to FNMA, we have the ability to ease up on the overlays that the “others” will add.  This program is a great comparison to the FHA loan, however, FHA will always be the most lenient of loans in our tool belt.

 

                Benefits-

1.            Funds can be a gift

2.            3% seller concessions

3.            Borrower can eventually get rid of PMI and no upfront PMI

4.            PMI rate based on credit score and lower than FHA

5.            May get some homes closed that would not pass FHA

6.            Borrowers are required to take a prepurchase homebuyer class

We also offer the MCM loan- reduced mi but income restricted to 100% of Avg Med Income  

Posted in:General
Posted by Melanie Mitchell - Team Lead/Listing Specialist on January 15th, 2015 3:00 PM

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