Buy a Home in Naperville with Only 3% Down
Fannie Mae recently announced a new loan program only available for first time buyers. Basically, it lowers the down payment requirement to as little as 3% for new home purchases where at least one of the purchasers has not owned a home in the last three years.
Although this loan program is available throughout the United States, we wanted to focus on Naperville because of the amount of homes currently on the market that are in a price point which would qualify for this program. According to several real estate web sites, as of February 10, 2015, Naperville has over 300 homes (condos, townhomes and single family houses) that are on the market for a price between $100,000 and $400,000. These price points qualify for the Fannie Mae 3% down First Time Buyer program since the mortgage loan amount would be less than $417,000, is the maximum mortgage limit for this program.
Some of the requirements of this program are as follows:
- One of the borrowers must be a first time buyer, which is defined as someone who has not owned a home in the last three years
- The down payment funds can come from the borrower’s own saved funds or a gift from a family member
- The property type is a single family detached house, town home or condominium; multi-unit properties do not qualify for this program
- This program is for primary residences only; second homes or investment properties do not qualify for this program
- Maximum mortgage amount of $417,000
Many buyers wait until they accumulate more funds for a down payment. However, rates are near historic lows and home prices are still at affordable levels. If you wait, you may miss your window of opportunity as both interest rates and home prices could increase.
So if you are interested in purchasing a home in Naperville or any other Chicago area suburb, it may make sense to act now and take advantage of this 3% down loan program. Please contact United Home Loans for a free pre-approval today.