New Conventional Home Loan Program:
3% Down Payments
Arizona home buyers can now purchase a home putting only 3 percent down, with no monthly PMI, and get a low 30- year fixed rate!
For homebuyers wishing to put less than 3.5% down on a home purchase in the Phoenix area, there is an exciting new program out, called the Fannie Mae Conventional 97 product. This lesser known conventional home loan option of a minimal 3% down payment requires a minimum 680 credit score. The Conventional 97 mortgage program also enforces a maximum DTI (debt-to-income) which may not exceed 45% debt-to-income ratio. This is a solid alternative to FHA financing and most down payment assistance programs as there is no Upfront Mortgage Insurance Premium (MIP). It does have monthly mortgage insurance , but is at a much lower rate than FHA loans. Overall, it’s often less costly as compared to FHA financing, too, as a result of less-expensive mortgage insurance premiums.
Conventional Home Loans with mortgage insurance (MI) allows the MI to be removed two years into the loan and the loan-to-value reaches 80%, and it automatically drops off when loan-to-value reaches 78%.
Conventional Home Loans: Benefits
- Lower Mortgage Rates
- Lower Insurance Rates
- Lower Initial Payment
- Can Be Cheaper Over The Course Of The Repayment
- Refinancing Options Are Available
- 15 and 30 Year Fixed Rate Mortgage Options
- More Homes to Choose From Compared to FHA
- Conventional home loans do NOT have an anti-flip policy
Contact us today to see if you qualify!