Fannie Mae 97% purchase loans
This product may be a less expensive option than FHA for those First Time Buyers with good credit.
- 3% down
- Conforming loans up to $417,000 loan amount with 700+ credit score
- Single family residence only and only owner occupied
- Condos or duplexes need 5% down
FHA – 96.5% loan
- 3.5% downpayment
- Upfront mortgage insurance premium of 1% rolled into the loan (or can be paid with Seller credits)
- Credit scores of 620+
- Loan amounts to $567.500 (Loan limits likely to decrease by end of year.)
- Parents and family members can gift funds for down payment and closing costs
- Parents can co-sign and still only need 3.5% down
- Up to 6% Seller contributions okay
- Owner occupied only
US Department of Agriculture loans
- 100% loan with zero down
- The ‘not so rural areas’ include Duvall, Snoqualmie, Fall City, and North Bend.
Fannie Mae HomePath loans
- 3% down
- NO monthIy mortgage insurance payment
- Investor and 2nd homes okay with 10% down and no monthly mortgage insurance
Fannie Mae incentives for some bank-owned owner-occupied homes
- 3.5% in closing costs for owner occupied homes can be paid by Seller
- Initial offer must request the incentive and be submitted after April 11th and close by June 30th
- No appraisal
- No monthly mortgage insurance cost
- Loans up to $567,500
- Single Family & Condos
- Seller can pay closing costs, origination fee, loan discount points
- Lots of listings on the HomePath website!
How much can Sellers contribute?
For a conventional loan, sellers can contribute:
- 3% with less than 10% down payment
- 6% with 10% to 25% down payment
- 9% with 25% or more down payment
