February 2019

Lower down payments mean more happy homeowners

Do cash concerns have your clients on the fence about buying a home? Many also inaccurately believe if they do not qualify for the low down payment programs they must wait until they can put 20% down. Here are some affordable mortgage options you can share with your clients to help them become homeowners sooner than they think.

  • Affordable Loan Solution® mortgage1

    The Affordable Loan Solution® mortgage offers a fixed-rate loan with a down payment as low as 3% for modest-income borrowers. In addition, no mortgage insurance is required. First-time buyers must participate in homebuyer education.

  • Federal Housing Administration (FHA) loan2

    The FHA loan is a government loan that offers flexible guidelines with a down payment as low as 3.5%. Maximum loan amounts can vary by county.

  • Freddie Mac® Home Possible® mortgage3

    The Home Possible® mortgage is offered through Freddie Mac® and provides a fixed-rate loan in select markets with only a 3% down payment required. Mortgage insurance is required. Talk with a lender to see if you live in a market that is eligible for the Home Possible® mortgage.

  • Department of Veterans Affairs (VA) loan4

    Insured by the Department of Veterans Affairs, this loan product offers a fixed-rate with 100% financing for current or former members of the U.S. armed services and their spouses.

The four loan products mentioned above can help you overcome the down payment hurdle.

As a Bank of America lending specialist, I am happy to talk with you more about affordable mortgage options that can bring home buying within reach.

 

 

1

Available for fixed-rate purchase loans with terms of 25 or 30 years and on primary residences only. Certain property types are ineligible. Borrower(s) must not have an individual or joint ownership interest in any other residential property at time of closing. Maximum purchase loan-to-value is 97% and maximum combined purchase loan-to-value is 103%. For loan-to-values >95% any secondary financing must be from an approved Community Second Program; ask for details. Homebuyer education may be required. Restrictions apply regarding co-borrowers. Maximum income and loan amount limits apply.

2

Monthly Mortgage Insurance Premiums (MIP) and Upfront Mortgage Insurance Premiums (UFMIP) apply. Maximum loan amounts vary by county

3

Available for fixed-rate purchase loans with terms of 25 or 30 years and on primary residences only. Certain property types are ineligible. Borrower(s) must not have an individual or joint ownership interest in any other residential property at time of closing. Maximum purchase loan-to-value is 97% and maximum combined purchase loan-to-value is 103%. For loan-to-values >95% any secondary financing must be from an approved Community Second Program; ask for details. Homebuyer education may be required. Restrictions apply regarding co-borrowers. Maximum income and loan amount limits may apply. Freddie Mac® and Home Possible® are registered trademarks of Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac.

4

VA funding fee applies except as may be exempted by VA guidelines. The fee is higher with a zero down payment, and maximum loan limits vary by county. If a down payment of 5% or more is made, the fee is reduced. The VA funding fee is non-refundable. Ask for details about eligibility, documentation and other requirements.

Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.

 

 

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