New and Improved Rates for First-Time Homebuyers

FHFA Changes Help First-Time Homebuyers

A recent rate adjustment from Fannie and Freddie is motivating first-time home buyers under the median average income to apply for homeownership.

Highlights:

• Interest Rate Reduction
• UP to 97% LTV
• Low credit score acceptance

Some Requirements Include:

• Meet regular underwriting guidelines (Fannie Mae, Freddie)
• Average median income < 100% in most of the US

What is a First-Time Homebuyer?

According to Fannie Mae, “A first-time homebuyer is an individual who (1) is purchasing the security property; (2) will reside in the security property as a principal residence; and (3) had no ownership interest (sole or joint) in a residential property during the three-year period preceding the date of the purchase of the security property. In addition, an individual who is a displaced homemaker or single parent also will be considered a first-time homebuyer if he or she had no ownership interest in a principal residence (other than a joint ownership interest with a spouse) during the preceding three-year time period.”  Source

 

If you’ve tried applying before or are interested in becoming a homebuyer now is a great time to talk with a GMFS Loan Officer!