2015 Fannie Mae And Freddie Mac Guidelines For First Time Home Buyers: 97% LTV Home Loans
Great news for first time home buyers for 2015 from Fannie Mae and Freddie Mac. The two GSEs, Government Sponsored Enterprises, Fannie Mae and Freddie Mac, has reincarnated the 3% down payment for conventional loans for first time homes buyers starting in 2015. Republicans view this new 3% down payment for home purchase program as risky for conventional loan home buyers because the home buyer does not have enough skin in the game. However, the 3% down payment on a home purchase for a home buyer with a conventional loan is lower than the standard FHA 3.5% minimum down payment home purchase requirements and those who qualify for conventional lending guidelines, it will be well worth it where they do not have to fork over as much money for their down payment.
When Will The 3% Down Payment Home Purchase Program Go Into Effect?
Fannie Mae’s 3% down payment home purchase conventional loan program will go into effect immediately. First time home buyers who qualify for a conventional loan can now qualify for the 3% down payment home purchase mortgage loan. Homeowners who need to refinance their mortgage loan can also qualify for a 97% refinance mortgage loan.
Freddie Mac will be starting a more limited conventional mortgage loan program starting in March which will give incentives to low income home buyer and first time home buyers wh get housing counseling.
3% Down Payment Conventional Loan Program
The 3% down payment home purchase conventional loan program is not new. Fannie Mae and Freddie Mac offered the 3% down payment home purchase conventional loan program up until November 2013 before it started to increase the down payment requirement in tightening its mortgage underwriting standards. The 3% down payment home purchase conventional loan program was not offered at all in all of 2014 until it was reinstituted in December 2015.
How Do I Qualify For Fannie Mae 3% Down Payment Home Purchase Conventional Loan
In order to qualify for Fannie Mae 3% down payment home purchase conventional loan, the home buyer need to be a first time home buyer or could not have owned a home in the past three years. Freddie Mac standards and guidelines to qualify for the 3% down payment home purchase conventional loan is that the home buyer be a first time home buyer and previously not have owned a home or home buyers with low to moderate incomes or home buyers who are purchasing a home in underserved areas.
97% LTV Refinance Mortgage
Fannie Mae and Freddie Mac will permit homeowners who currently have mortgage loans backed by Fannie Mae and/or Freddie Mac to do a 97% refinance mortgage on their mortgage loans. Fannie Mae will allow refinance mortgage loan borrowers to withdraw cash out for their refinance closing costs. Freddie Mac will not permit refinance mortgage loan borrowers to take cash out for closing costs on a 97% loan to value refinance mortgage loan.
Related> Fannie Mae and Freddie Mac Lowers down payment requirement to 3%