Knoxville First Time Home Buyers – 3% Down Loans Are Back!
Last week, Fannie Mae and Freddie Mac announced that first time home buyers are now be eligible to buy a home with a 3% down conventional loan. In recent years, many Knoxville first time home buyers had struggled to come up with a full down payment for a 5% conventional loan or had been sidelined due to the increase in mortgage insurance premiums in FHA loans. Read on to what these new programs mean for Knoxville first time home buyers.
Fannie Mae and Freddie Mac have both announced new programs for 3% down conventional loans, but each of their programs vary slightly. Both programs were announced in hopes of making it easier for first time home buyers to buy homes.
Freddie Mac’s program is called Home Possible Advantage. The program is geared to borrowers with low to medium income, including first time home buyers. In order to qualify, a buyer would need to meet credit requirements and may have to take a education program, if they are a first time home buyer. If the borrower does not have a 3% down payment, the funds may be gifted. This program isn’t only eligible to first time home buyers, it only requires that one of the borrowers be a first time home buyer or that the buyer hasn’t owned a home in 3 years.
Fannie Mae’s program is called MyCommunityMortgage. It is very similar to that of Freddie Mac. It requires that a buyer meet certain credit standards and complete an education course, if they are a first time home buyer. Like the Freddie Mac program, it is not required that a buyer be a first time home buyer, it just requires that a buyer hasn’t owned a home in 3 years or that at least one of the borrowers be a first time home buyer.
Are you thinking about buying a Knoxville home this year? If so, do not hesitate to contact Knoxville Home Team if there is any way that we can assist you. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at Kati@KnoxvilleHomeTeam.Com. Also, be sure to check out our Knoxville Home Search Page to see what homes are for sale in the Knoxville area.