Low down payments are Back as Lenders ease down payment rules


Great News! Low down-payments are Back as Lenders ease downpayment rules

If you have been wanting to buy a home, but have been sitting on the sidelines because you did not have 20% for a downpayment to buy a home, now is the time to get up and get moving.

CNBC's Economy Watch reported:

..."Lenders are increasingly approving low down payment loans, and government sponsored mortgage giant Fannie Mae is buying more of them. "

On March 18, 2013, REALTOR Magazine ran the article in which they quoted:

..."In general lenders have been willing to do more than they may have been willing to do in the past," says John Forlines, chief credit officer for Fannie Mae's single family business. "Our requirements have not changed significantly, but other parties taking risk, the lenders and mortgage insurance companies in particular, have been more flexible than they may have been in the past."

The Dan Green's article in Daily The Mortgage Reports - Low-Downpayment, Zero-Downpayment Mortgage Products For 2013 - Dan points out the following low down payment loan options:

  • FHA will also allow a downpayment of just 3.5 percent in all U.S. markets
  • Conventional 97 program is available from Fannie Mae with a 3 percent downpayment program
  • VA offers a loan program with 0% down
  • USDA Mortgage offers a 100% mortgage, too


Fannie Mae and Freddie Mac both allow loans with up to a 95% LTV on the purchase of a single-family primary residence, however the 5% downpayment must come from the buyer's/borrower's own funds. For buyers obtain their downpayment as a gift, Fannie Mae and Freddie Mac will still require and verify that the Buyer has 5% of the downpayment is from the borrower's own funds unless the gift of downpayment is 20% of the home's purchase price or greater. Below are links for you to read further on this:


Fannie Mac - http://www.fanniemae.com/portal/index.html

Freddie Mac - http://www.freddiemac.com/

LTV - Loan to Value - http://en.wikipedia.org/wiki/Loan_to_value


Feel free to use the Mapping feature on my website GreatHoustonProperties.com to see what homes are selling for in the area you want to move into and find out what foreclosures are on the market that might be of interest to you:

Houston Homes for Sale by Map

Cypress Homes for Sale by Map

Katy Homes for Sale by Map

Spring Homes for Sale by Map

Tomball Homes for Sale by Map

Houston Foreclosures

Cypress Foreclosures

Katy Foreclosures

Spring Foreclosures

Tomball Foreclosures

Houston Homes Just Listed

Cypress Homes Just Listed

Katy Homes Just Listed

Spring Homes Just Listed

Tomball Homes Just Listed


If you are thinking of buying a home, Call me to get the ball rolling so that when you find the home you love you won't miss out just because you were not prepared.

Call Jason Gracey of RE/MAX Vintage at (281) 376-2755!



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