Freddie Mac’s Home Possible Mortgage is a great mortgage program designed for first time home buyers. What’s so special about this program is that it allows a home buyer to qualify for dramatically reduced mortgage insurance premiums with a minimum down payment. The down payment may be gifted by a family member. No reserves are required for a single family dwelling.
Sellers may contribute up to 3% of the sales price towards allowable closing cost, prepaids or reserves. The can include an upfront private mortgage insurance premium if the borrower opts for a “single premium” structure instead of having it paid for monthly in their mortgage payment.
There are income limits unless the borrower is buying in an “underserved area census tract” as designated by Freddie Mac. Currently the income limit in King and Snohomish Counties is $98,040.
For purchase transactions when all of the borrowers are first time home buyers, then at least one of the borrowers must attend a home ownership education class. NOTE: this is different than Home Advantage or the other programs offered by the Washington State Housing Finance Commission where ALL proposed borrowers (anyone who will be on the mortgage) must attend a class. WSHFC sponsored classes will satisfy the education requirement.
Based on rates as of the publishing of this post, August 30, 2013 at 9:00 am, for this program, I’m quoting:
4.625% (apr 5.138% ) priced with 1.118 points. Based on a 30 year fixed rate, the PIMI payment (principal, interest and mortgage insurance) payment is estimated at $1579.30. Property taxes and home owners insurance are additional and will be included in the total mortgage payment.
Don’t forget, we also have the Home Advantage mortgage program, which allows incomes up to $97,000 in the state of Washington and has down payment assistance available as well as Fannie Mae HomePath.
I’m happy to help you with the financing of your next Washington home!