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.
- 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!