New Financing Options for First Time Home Buyers

Now that the reign of No-Money-Down, Credit-Doesn’t-Matter loans are sinking into the sea, it’s getting a little tougher for first time home buyers and those credit-challenged buyers to get the financing to buy a home.  Here’s a couple of options:

1. Fannie Mae offers an Expanded Approval program– lenders can now say ‘yes’ to borrowers with blemished credit.  You might have a bit higher interest rate, but you’ll also have a stable fixed-rate loan.  Your lender will need to be able to submit your application through the Fannie Mae Desktop Underwriters system.  Some lenders can also offer a bonus Timely Payment Rewards option– this feature rewards the home buyer’s good payment record by reducing the interest rate (when was the last time you had a bank thank you by reducing your interest rate?!?).

2. Fannie Mae also has a program called My Community Mortgage. It’s a flexible mortgage designed for low and moderate income borrowers.  There is no minimum borrower contribution, the mortgage can go up to 40 years, and it’s possible to get 100% financing.

3. Freddie Mac has a similar program called the Home Possible Mortgage, with both fixed rate and adjustable mortgages. The Home Possible mortgage has a unique feature that allows the buyer to own another home.

Search out lenders that offer these programs to fit your needs.  By the way, special kudos to the mortgage blog www.lendingclarity.com– it’s a great source of ‘all the good’ in the mortgage finance industry. Marc Brinitzer is the mortgage broker who writes this blog, and he’s licensed to do business in most of the western US…. so remember that, all you Western-area readers! This blog is a great resource of good information, and I’d trust Marc to handle your needs…..

For Columbus area lenders, feel free to contact Sondra for more information.