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Freddie Mac's 3 Percent Down Program Begins

  • March 25th 2015

by Lark Turner

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Freddie Mac's 3 Percent Down Program Begins: Figure 1

Homebuyers can now get Freddie Mac loans after putting just 3 percent down.

The Home Possible Advantage program, announced late last year, was first made available to homebuyers on Monday. The program can also be used to refinance a home for 3 percent equity.

The program isn’t limited to first-time homebuyers, but it is targeted at those earning median and lower incomes. It’s limited to buyers making no more than 100 percent of the area median income, and first-timers have to participate in a homebuyer education program to get the loan. Gift funds can fund the down payment and closing costs entirely; no personal funds or reserves are required to buy a one-unit property.

Buyers have to live in the home and cannot own any other properties, according to Freddie Mac. They have to meet credit score requirements and can only use the program to finance conventional, fixed-rate mortgages of 30 years or less.

See other articles related to: freddie mac, home possible advantage

This article originally published at https://dc.urbanturf.com/articles/blog/freddie_mac_now_offering_home_loans_with_3_percent_down/9686.

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