Freddie Mac is releasing it's Home Possible and Home Possible Advantage programs on March 26th 2015. Both Fannie Mae and Freddie Mac have versions of 'help for home buyers' programs. These 4 new loan programs offer home loan shoppers a wide range of opportunity.
Here's a brief summary:
Fannie 97% Fannie 97% Freddie 95% Freddie 97%
My Community Standard Home Possible Home Possible
Advantage
Property type: one unit one unit 1-4 units one unit
Manufactured:
homes allowed? No No Yes No
Are there income
limits? Yes No Yes Yes
First time
homebuyers only? Yes Yes No No
Down Payment
Required (min) 3% 3% 5% 3%
Debt Ratios 45% 45% 45% 45%
Refinancing
available? No If Fannie non MCM Yes Yes
There are dozens of nuances to these programs. This Mortgage Minutes post hits only a few high points in terms of differences but there are many more. Credit score requirements are dependent upon a variety of things as are interest rates. Reserves and home buyer counselling requirements are specifically guided as well. In addition, Fannie Mae offers special consideration to teachers, firefighters, police officers, health care workers and military personnel as well as disability support.
These are great programs truly designed to help real people. Here's a link to Freddie Mac that is packed with good data.
http://www.freddiemac.com/singlefamily/factsheets/sell/pdf/home_possible_97_572.pdf
The Fannie Mae site is here:
https://www.fanniemae.com/content/announcement/sel1415.pdf
As a California licensed mortgage professional, I am obliged to the usual disclaimers and disclosures. Meeting the scope of the limited information found in this posting will in no way qualify one for home financing. On March 26th 2015, these programs will all be a part of the modern lending landscape and should be considered when applying for a mortgage
Dan DeVere
661-400-5040
dan@pfmd.com
NMLS 295207 CBRE 01110945
Pacific Funding Mortgage Division
39409 10th Street West Suite B
Palmdale, CA 93551
25350 Magic Mountain Parkway #190
Valencia, CA 91355
