Park Place Finance is pleased to announce it is offering a new low-down payment loan program.
The HomeOne Mortgage – Freddie Mac
HomeOne mortgage is a low down payment option that serves the needs of more first-time homebuyers, along with no cash-out refinance borrowers. This mortgage solution allows you to help more first-time homebuyers achieve the milestone of homeownership, regardless of their income levels or geographic location. HomeOne reflects our dedication to responsible lending, sustainable homeownership, and improving access to credit.
In addition to the HomeOne Program, Park Place proudly offers The HomeReady 3% down program through Fannie Mae – HomeReady® mortgage Built for today’s home buyers. Meet the diverse needs of today’s buyers. Designed for creditworthy low- to moderate-income borrowers, HomeReady offers expanded eligibility for financing homes in low-income communities.
- Financing up to 97% loan-to-value (LTV) for the purchase of a one-unit principal residence
- The borrower is not required to be a first-time buyer.
- Cancellable mortgage insurance (restrictions apply); lower MI coverage.
- Gifts, grants, Community Seconds®, and cash-on-hand are permitted as a source of funds for down payment and closing costs.
- Supports HomeStyle® Energy, manufactured housing, and HomeStyle Renovation (approved lenders)
- Flexibilities include Rental unit and border income and Non-occupant borrowers, such as a parent.
What are the differences between conventional, FHA, and 3% down conventional loans?
Conventional Loans
A conventional loan is the standard loan program that is great for those who have good credit and are prepared to put down a large down payment. With a conventional loan, you can borrow a higher amount than FHA and do so without up-front private mortgage insurance. To qualify for this type of loan, you must have credit of 620 or higher, as well as be prepared to have a 5%-20% down payment.
FHA loans
An FHA loan is a mortgage issued by a federally approved bank or financial institution that is insured by the Federal Housing Administration. This program was created to make homes easier to qualify for. Mortgage insurance provides a certain amount of security so that qualified lenders can accept a riskier loan. FHA loans are not necessarily only for lower-income borrowers with lower credit. Credit Scores as low as 530 are accepted. A higher-income borrower, however, might be dissuaded from an FHA loan program due to its loan limits which are often lower than those of conventional mortgages. While this program has benefits, it comes with high fees upfront and permanent non-optional mortgage insurance.
3% Down Conventional Loans
The 3% down loan is simply a twist on the traditional conventional loan program. With this program, the loan-to-value ratio (LTV) can be up to 97% for a loan on a single-family unit. This means that your down payment must be only 3% or higher, which is lower than the minimum down payment for FHA loans. This is a great program for first-time homebuyers looking for a fixed rate program at or below $484,350 loan amount or $726,575 in high-cost areas (effective 1/1/2019). As such, this new program makes homeownership a much more achievable goal for many people.
As you try to decide which type of loan is best for you, check out Park Place Finance’s variety of loan programs. Choosing the right mortgage program can be key to making sure you get the best deal on your loan, so let Park Place Finance help.
Contact us today so we can help you figure out what program is right for you.