The following products are extinct:
- Fannie Mae Flex 100
- Freddie Mac 100
- My Community Mortgage 100
- Home Possible 100
If you are short on down payment with credit scores below 680, you should consider FHA financing, which is not as credit score sensitive as conventional programs. Fannie Mae Flex 97 is still available as well as Home Possible 97. Both conforming programs allow for 3% down.
Home buyers should also plan on having "reserves" after closing. The amount of reserves may vary depending on the program from 2 – 6 months of proposed mortgage payments for owner occupied when it’s said and done. Real estate agents, your first time home buyers may need help with closing costs from Sellers…if they’re willing…in order to meet the reserve account conditions.
We’re rolling back the underwriting guidelines…not all the way back to the ice age…but close!
If you’re considering buying a home or refinancing, meet with your Mortgage Professional sooner than later so you have time review your credit and consider your options.