Conventional 97% – (That’s 3% down) Fannie Mae has reinstated their 3% down loan program. One of the borrowers must be a first time homebuyer, which means that they cannot have had ownership interest in a home in the past 3 years. All of the down payment can be a gift from a family member!
My Community Mortgage – Like the Conventional 97 program, this Fannie Mae product is for lower income buyers and offers reduced mortgage insurance costs. Borrowers must complete a homebuyer education class. Income limits are established by county that must be adhered to.
FHA Loans – Allows buyers to get into a home with a 3.5% down payment, which can be in the form of a gift from a family member. FHA makes allowances for lower credit scores and higher ratios.
VA Loans – This is a first class zero down payment loan program. Wintrust waives our processing and underwriting fees for our veterans. The seller can contribute up to 4% as a credit towards closing costs and we can offer a lender credit to minimize closing costs as well. Always be sure to ask your prospects if they have served in the military.
USDA Loans – Yes, the US Department of Agriculture has a home loan division that allows 100% financing. The property must be in a rural zone and the borrower’s income must be within the USA income limits. Give us a call if you want to learn more about USDA qualified communities in your area.
State Bond Programs – Most states offer a housing program of some type that allows for zero or low down payment and other benefits for the state’s low to moderate income residents. For example, Massachusetts offers the Mass Housing programs, which has income limitations and is available to first time buyers only (defined as not having ownership in a piece of real estate in the past three years) and requires that the buyer attend a home buying education class.
Each of these programs offers different benefits and advantages depending upon the profile of the homebuyer. Let your mortgage professionals at Wintrust Mortgage navigate this maze with your buyers. We will provide complete education as to appropriate offerings and provide written comparisons on all programs. Homebuyers will be better equipped to make an educated decision on how to structure their new home purchase in a way that meets their needs and dreams!
Regional Vice President
We’re here to help you and your buyers do more, learn more and grow more!