Buy A Home In Naperville With Only 3% Down
United Home Loans provides lending services for borrowers nationwide, however we specialize in helping home buyers purchase or refinance home in the greater Chicago area. Naperville, a suburb located 35 miles south west of Chicago is a regular city on the “Best Places to Live” lists from magazines such as Money and Kiplinger. Naperville is an attractive and popular location with affordable homes and United Home Loans can offer expert advice to home buyers looking to purchase a home in this sought-after city.
The new mortgage program available since early 2015, commonly referred to as the “Fannie Mae 3% Down Mortgage” has been offering home buyers low downpayment loans. The goal of the program is to assist home buyers who would qualify for a loan but who may lack the funds to pay a five percent or more downpayment. The obstacle faced by many potential home buyers in the housing market is the expectation of putting twenty percent down as opposed to not qualifying for a loan or making the monthly mortgage payment. In this way, mortgage lenders, including United Home Loans are helping creditworthy borrowers obtain a mortgage in popular cities such as Naperville.
Five Things You Need To Know About The Fannie Mae 3% Down Mortgage Program:
1. With this higher LTV (loan to value) product, one of Fannie Mae’s requirements is that at least one of the borrowers on the mortgage is a first-time home buyer. The definition of a first time purchaser is an applicant who has not owned a home within the last three years.
2. The program allows for only fixed rate loans. Adjustable rate loans are not permitted.
3. The program allows for the three percent downpayment to come from gifted funds as long as the individual providing the gift is related by blood or marriage to the applicant.
4. The subject property must be a single-family unit. Multi-unit homes are not permitted.
5. The loan size may not exceed $417,000.
Not all applicants applying for a three percent down mortgage may be eligible, due to the marked guidelines and requirements of the program. However, the next-lowest downpayment loan from Fannie Mae and also from Freddie Mac requires just five percent down.
If you are interested in pursuing one of these low downpayment programs in Naperville or in the greater Chicago area, United Home Loans can help guide you through the process and help you determine if the low downpayment loan fits your budget. You can call us at 708-531-8388 or contact us below.