Lakewood Ranch, Fl-

Fannie Mae announced on December 8th that it is making much easier for first time buyers to purchase a home. First time home buyers will now have access to the 97% loan to value ratio loan for borrowers who earn a qualified income but aren't able to save enough for a 30 % down payment. This new loan will require borrowers to  meet all of Fannie Mae's usually strict eligibility requirements along with income verification and private mortgage insurance. Generally a credit score of 640 or higher in necessary.

Fannie Mae's Vice President states that this new program was designed to help qualified borrowers gain access to mortgages by  removing barriers for creditworthy consumers. Borrowers can purchase a home using Fannie Mae's standard loan or its
 My Community Mortgage loan with 3% down as long as at least one buyer is a first time buyer. Freddie Mac will also be rolling out a similar program but it won't be available until spring of 2015. Both programs will allow for borrowers to use "gift funds" whether they come from a family member, a non profit or other sources. This new product will also benefit consumers who want to refinance but don't qualify under the Home Affordable Refinance Program (HARP) utilizing the 97% loan to value product. These new plans are particularly welcome now as the number one obstacle that prevents renters from becoming home owners is the inability to save the previously required 3% down payment.

Fannie Mae & Freddie Mac are agencies that purchase existing mortgages from lenders and then sell them in shares to investors. This allows lenders to offer new loans to more borrowers and those interested in refinancing. Fannie & Freddie currently own half of all mortgages in the US.

Please call me today, I would love to help you navigate the first time home buying process. I work with some really terrific mortgage lenders who can help walk you through all of the steps for financing your new home.