Unless you were obtaining an FHA loan which requires 3.5% down or have rights to a VA loan with 100% financing, your next option was a 5% down conventional loan. Though there is a common misconception you must put down 20% to purchase a home, many people try/want to put down 20% so they do not have to carry private mortgage insurance (aka PMI). Depending on the price of your home, PMI is a good extra chunk of change added to your monthly mortgage payment.
Well, your day has arrived. Come December 13th you will now be able to obtain a conventional Fannie Mae backed loan with only 3% down. What does all this mean? Well, it means that you can now buy a house with as little at 3% down with a decent credit score and debt to income ratio. Home ownership just got sweeter and more affordable!
For more scoop and details, check out this article.
Ready for Spring!
Millennial. Southern. Professional, REALTOR in Columbia, SC.