One of the reasons people use FHA to buy a home is that it has a small 3.5% down payment.
Conventional has a small down payment program too, and in some ways it’s better than FHA…
1) 3% down (97% financing).
2) Max loan amount is $417,000 (much higher than FHA).
3) Debt to income ratio, and reserves determined by automated underwriting.
4) Standard MI coverage of 35% is a MI factor of 1.15% (CHEAPER THAN FHA)
5) No up front MI!
This program does require a minimum credit score of 680.
If you want to purchase a home and have a low down payment – this program is an option for you!
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
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