“To increase access for creditworthy but lower-wealth borrowers, FHFA is also working with the Enterprises to develop sensible and responsible guidelines for mortgages with loan-to-value ratios between 95 and 97 percent. Through these revised guidelines, we believe that the Enterprises will be able to responsibly serve a targeted segment of creditworthy borrowers with lower-down payment mortgages by taking into account “compensating factors.” While this is a much more narrow effort than our work on the Representation and Warranty Framework, it is yet another much needed piece to the broader access to credit puzzle. Further details about these new guidelines will be available in the coming weeks as we continue to advance FHFA’s mission of ensuring safety, soundness and liquidity in the housing finance markets.”
Washington state home-buyers can already buy a home using a conventional mortgage with lower down payments (and down payment assistance) if they use a program like WSHFC’s Home Advantage Mortgage. However, this program requires the borrowers attend a WSHFC sponsored home-buyer education class.
Bottom line, if you’re wanting a reduced down payment conforming mortgage, you don’t need to wait on the FHFA to make it happen. It’s available now! For more information, or a hassle-free rate quote, please contact me.