First Time HomeBuyer Programs
For many new home buyers the first time homebuyer programs is a great incentive. Fannie Mae has just rolled out a new program where you can buy a home with as little as 3% down. Low interest rates and a low down payment, there has never been a better time than now for first-time buyers.
First time buyers are well anyone who has not owned a home in the last three years or at least one co-borrower meets these requirements, you may want to read this again. This program is also extended to refinancing Fannie Mae loans for 97% LTV.
This program is designed to help the millennial generation and low to moderate-income consumers to become homeowners.
In September 2014 it was reported that the homeownership rate sank to a 19-year low of 64.4. This program will open the doors for people that were previously put off by higher down payments, fees and monthly insurance premiums. Buyers with higher credit score will be entitled to better interest rates making the Fannie and Freddie loans cheaper.
The agency is expecting a broad range of lenders to participate in this fixed-rate mortgage program. Freddie has reported that there is safeguards built in this program to ensure that applicants are able to repay the debt.
This program started on December 13th, 2014.
This program is an existing program offered by Fannie Mae that has several features and financing options. One of the programs that sound interesting is call First Look.
First Look allows homebuyers to negotiate and buy foreclosures before they are made available to investors. The way this works in the first 20 days the property is listed only eligible buyers (i.e. owner occupants) will be allowed to make offers. After the 20 day period expires, investors will be allowed to make offers too.
Fannie Mae’s definition of an owner occupant is a buyer that will occupy the property as their principal residence within 60 day of closing and will maintain their occupancy for a in the purchased property for at least 1 year.