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!
Contact a licensed housing specialist now! 602-429-6789