About Government Refinance and Home Purchase Programs

Until this week, borrowers needed at least a 5% down payment to purchase a home through a Fannie Mae or Freddie Mac conventional loan program. As of this week a new 3% down program is rolling out. The new program will only apply to single family, primary residences, and as with all Fannie/Freddie loans, qualifying will require solid credit and income. Borrowers with credit troubles will probably still be best served by the FHA or VA purchase programs.

As with any new mortgage program, there will probably be some growing pains in the initial weeks of the launch. But the good news for home buyers is qualifying for a Fannie/Freddie loan will now require less money up front.

If you are interested in purchasing a home, contact us today on our home purchase page.

Mortgage interest rates continue to slowly drift lower. Rates recently hit lows that haven’t been seen since May of 2013. That was the month the Fed announced it would begin tapering its quantitative easing program. While rates have not yet hit the lows we saw in 2012, this latest dip is welcome news to Americans looking to buy a home or refinance their mortgage. Rates have not moved quickly in recent months, but the general trend has been downward when they have moved. Contact us today to get more information on government mortgage programs.

The FHA recently announced that there will be no changes to its maximum loan limits in 2015.

The maximum loan size for FHA loan varies county by county. In a counties deemed high cost the maximum FHA loan size on a single family home is $625,500. The maximum in a low cost county is $271,050. There are varying limits from county to county all across the United States. Contact us to learn more about the FHA loan limits in your county.

FHA loans are excellent loans for borrowers with less than stellar credit. The FHA is much more lenient on credit scores than most other loan types. The FHA is also popular as a home purchase loan because it only requires a 3.5% down payment. Further, the FHA allows for up to 85% cash out loans, so it has been popular in the past as a cash out loan option. Last, homeowners who already have an FHA loan may be eligible to reduce their interest rate through the FHA streamline program.

Contact us today to learn more about FHA loans or other government loan programs.