Union Home Mortgage is now offering 3% Down Options on Home Purchases
Date
12/12/2014 6:49:07 AM
Union Home Mortgage provides low down payment options through Fannie Mae and Freddie Mac's initiative offering 3% down payments.-
strong-Strongsville OH – Union Home Mortgage Corp. (UHM) is excited to announce that they will be able to offer 3 percent down conventional loan options on home purchases.
This news is the result of a recent addition made by Fannie Mae and Freddie Mac and an ongoing effort to bring more first-time homebuyers into the market. Rather than the average 20 percent down payment (the difference between the lower of sales price and appraised value not including closing costs) for conventional mortgages this 3 percent option is expected to open more doors for first-time buyers.
“This is exciting news for the Mortgage industry as a whole” UHM CEO and Mortgage Bankers Association (MBA) Chairman Bill Cosgrove said. “One of my main goals as the 2015 MBA Chairman is to bring more first-time homebuyers into the system in a healthy responsible way. This news not only supports those ideas but will also make the housing market and mortgage industry more resilient.”
Many mortgage professionals believe the new lending guidelines released by Fannie and Freddie will help buyers who are creditworthy but lack the funds for a substantial down payment. This initiative known as MyCommunityMortgage is considered the most recent move in the federal government’s effort to help the housing market recover from the 2008 crash.
“The recent change in Fannie and Freddie does not signal that the mortgage industry is regressing to their old lending habits before 2008” Cosgrove said. “Rather the low down payment option will be implemented with and supported by stricter criteria that must be met during the underwriting process making sure these borrowers are getting a loan they can truly afford.”
Before this low down payment option was released first-time buyers often looked to get a 3.5 percent down payment through an FHA loan. However this loan carries monthly insurance premiums and upfront fees with it closing certain buyers out of the FHA market. The new 3 percent down payment will help those in the mortgage industry provide service to a segment of these creditworthy borrowers and allow the borrowers access to credit without a burdensome down payment.
“This change truly adds a large piece to the puzzle by expanding lending options to creditworthy borrowers” Cosgrove said. “I can’t wait to see how many doors open to families who once thought they were not homeownership material.”
Fannie Mae’s plan will take effect on December 13 2014 with Freddie Mac’s plan opening to borrowers on March 23 2015. To learn more about buying a home or to speak with a mortgage professional please visit UnionHomeMortgage.com
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Company Name: Union Home Mortgage
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Phone: (440) 234-4300
City: Strongsville
State: Ohio
Country: United States
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