by Michael L. Baker, Sr. Mortgage Loan Officer at Affinity Mortgage.
2017 is here and with it come a host of mortgage guideline improvements! One that started at the end of 2016, but that I see as a HUGE boon in 2017 is the 3% down payment Conventional Loan Purchase Program.
This 3% down payment is LOWER than the FHA’s 3.5% down payment and comes with some added perks over the FHA loan as well!
- There is NO up front mortgage insurance, like with the FHA loan. The FHA charges you a 1.75% fee up front (rolled into your loan) just to play ball. On a $400,000 home this would be a $7,000 fee. However, with this new 3% down payment program you don’t have to pay an upfront funding fee.
- In many cases the PMI (monthly mortgage insurance for people putting down less than 20% down payment) is reduced or can actually be eliminated in some cases.
- These loans process faster and are generally easier to originate than the paperwork/guideline intensive FHA loans.
- You can use gift funds for your entire down payment.
HOW DO I KNOW IF THIS IS THE RIGHT PROGRAM FOR ME?
Excellent question! The short answer is… you probably don’t know. There are dozens and dozens of loan programs that us mortgage lenders have access to. Some of them even have 0% down payment options with NO PMI (monthly mortgage insurance for those that put down less than 20%) for borrowers that qualify. The point is you need a professional mortgage loan officer on your side that can navigate you through the treacherous waters of mortgages. I would love to be that guy for you.
PS, If it sounds like I can help you, please contact me directly through Linked In, email me at firstname.lastname@example.org or call/text me at 913-735-5363. If you’re not yet ready for a conversation, but you’d like to learn more about me and how I can help you or about the mortgage process in general, including great blog posts to send out to your clients, check out my website at http://www.michaelbakerhomeloans.com.