These are great mortgage programs available for home buyers this year. I keep up on the latest programs available and find things most bankers don’t realize are available. These programs are available for all buyers, not just first time buyers. If you have family, friends, or co-workers thinking about buying a home this year, it truly is a great time to buy. Two main reasons:
- Loads of cheap inventory that banks need to sell. You have many homes to choose from.
- Interest rates are still at historic lows. We plan on seeing them this low through most of summer, because of the government actions to keep the rates low.
On top of that, here are the most popular programs lately, since most buyers are not looking to do a big down payment.
2011 Mortgage Programs For Buyers
- USDA Rural Housing - This program is one of only two true no down payment programs still available. On top of no down payment, the buyer can roll the closing costs into the mortgage loan if the value of the home is a bit more than the accepted purchase price.
- Fannie Mae HomePath - This program just announced that Fannie Mae will pay 3.5% of the closing costs for the buyer if they buy a HomePath eligible home. These are homes that Fannie Mae bought back and is looking to resell. This credit offer is only good through June 30th, so don’t hesitate with this one. You can find homes are HomePath eligible here.
- Single Premium MI (mortgage insurance) - This is a way to avoid the MI payment without having to put a 20% down payment. A single premium MI is considered a closing cost, which can be paid by the seller in the offer to purchase contract. By paying the MI as a single premium you will not have monthly MI as part of your mortgage payment. Even if the seller doesn’t agree to pay for closing costs, you can pay this as a one time cost to avoid monthly MI.
There are many other programs available, but the ones above are very beneficial to most buyers.
