New Loans Available for First-Time Home Buyers


New-Home-Younger-Family-webMany first-time home buyers may now be able to catch a break in the housing market through a new loan program created to make it easier for more first-time home buyers to get a mortgage.

The new program will allow for mortgages with a down payment as low as 3 percent as long as one of the borrowers has not owned a primary residence within the past three years.

In a statement released by Fannie Mae, “the 97 percent loan-to-value ratio (LTV) option will expand access to credit for qualified first-time home buyers that may not have the resources for a larger down payment.”

Is this type of loan right for you?

Since there are certain requirements for this type of Fannie Mae loan, here are some of the basics to be aware of:

  • Must be a fixed-rate loan between 10 and 30 years
  • Must be for a single-unit property
  • Must be for your primary residence
  • Borrower must be a first-time home buyer, or not have owned a home in the past three years
  • Minimum 3% down payment required
  • Home buyer education may be required
  • Gift funds for down payment are okay

Now that Colonial offers the Fannie Mae 3% Down Payment Loan with some of the lowest interest rates in history, we can better serve you with our retained servicing that keeps us close long after the sale. Since Colonial services 99% of the loans we offer our customers, it means you can confidently know who to call with questions and always know where to make your payments.

Home buying doesn’t have to be hard. All you need is an expert to guide you through each step of the home buying process, from pre-qualification to closing. Colonial has been helping first time home buyers for more than 60 years, so we know all of the ins and outs to help you successfully purchase your new home. Talk to one of our loan experts for first-time home buyers by contacting Colonial today.

 

 

 

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