3% down in today's market is the real deal. Follow these 3 steps to a 3% down Freddie Mac Home Possible AdvantageSM mortgage:
Talk to your lender. We work with more than 3,000 lenders nationwide so there's a good chance your lender offers Freddie Mac's Home Possible Advantage mortgage – they may call it a different name. If not, you may want to shop around.
Plan to live in the home. To qualify, you must live in the home you are buying. You can also refinance your existing mortgage without taking any cash out. It's available in 15–, 20–, and 30–year fixed–rate terms.
Gather enough money. You must have funds to cover the down payment and the closing costs. The good news is that these do not need to be your own – the 3% down payment can come from a number of sources, including personal funds, gift funds, grants and affordable second mortgages. According to the recent Freddie Mac 55+ survey, over 20% of 55+ homeowners said that they have helped family and friends with a down payment.
See our 3% down checklist to see if you could qualify for Home Possible Advantage. And even if you don't, you have options. A growing number of today's buyers are putting down between 5 and 10%. Sure, you'll have to pay PMI, but it means you'll be able to take advantage of today's historically low mortgage rates and affordable home prices in many parts of the country. Talk to a lender today.