3% Down Mortgage Loan

Advantages Of 3% Down Mortgage Loan

With rising costs and student debts that many people have, it is getting difficult for homebuyers to save up for a down payment to purchase a home. Until recently, buyers had to put down 3% to qualify for conventional financing, or they were stuck with 3.5% down FHA financing and their expensive monthly mortgage insurance if they only had a minimum down payment.

A new 1% down mortgage program is now available to all home buyers! This program allows home buyers to only bring 3% of the mortgage amount to the closing table. Only a select of mortgage companies have this program. With the gift of a 2% grant, the lender is helping solve financing challenges for first-time and move-up buyers. The 2% grant is completely forgivable. The grant does not even have to be repaid if the buyer moves or refinance. And unlike traditional down payment grants, these grants also have no silent second trust deed or interest accruing against them. Wright Mortgage is offering borrowers the opportunity to put down only 3%, with no upfront mortgage insurance premium and no life-of-loan mortgage insurance premium like with the FHA. There are median income limits and the maximum DTI ratio is 45%, which is standard.

Here are some more highlights of this program:

  • A minimum credit score of 700

  • Purchase Transactions only(Single Family Properties)

  • Save on Monthly Mortgage Payments(Maximum Mortgage Insurance capped at 25% versus standard 35%.

  • No Reserves Required

  • Area Median Income Applies to this program

  • Home Buyer Education Required for First Time Homebuyers(Free when using Freddie Mac’s Credit Smart)

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