8/29/13

Down Payment Changes Effective November 16, 2013

PLEASE READ: After November 16th, borrowers must do 5% down to meet Fannie Mae/Freddie Mac guidelines eliminating the 3% down option.   
Fannie/Freddie is the area where the best mortgages are found and mortgage insurance premiums are the lowest. 
 
There will still be FHA loan options if the borrower wants to do 3.5% down, but then they have to take the higher mortgage insurance premiums of FHA, which are the same for all borrowers, regardless of their credit score and the mortgage insurance never falls off on an FHA.
 
For borrowers where FHA may be the best option is when credit scores are lower and it is their only option.

Provided by Tammy Simmons of Grand Bank