Not sure you qualify for our 3% down mortgage? Today we're dispelling the top two myths about what it takes.
Myth: I have to be a first–time homebuyer to qualify.
Fact: Our Home Possible Advantage mortgage is for low and moderate–income borrowers with limited savings, including first–time homebuyers. Generally, you need to meet minimum credit requirements and earn no more than 100% of your area median income. First–time homebuyers must participate in an acceptable borrower education program.
Myth: The down payment has to come from my own funds.
Fact: 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.
Read other posts in our Myth vs. Fact series:
- Myth vs. Fact: PMI
- Myth vs. Fact: Qualifying for a Mortgage
- Myth vs. Fact: Down Payments
- Myth vs. Fact: Mortgage Refinance
Have a comment or question about this post? Email us to let us know what's on your mind.