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Today, we have some fantastic news we thought we should share with you!
There is a new conventional loan program that allows you to buy a home with as little as 3% down. There are a few reasons we’re excited about this program.
The main loan program people have been using if they have a small down payment is the FHA loan. This is a great loan program that allows as little as 3.5% down. However, one of the negatives of this program is the mortgage insurance you have to buy as part of it. The cost of mortgage insurance has been growing over the past few years, making 3.5% down not that sweet after all.
With the new 3% down loan program, the mortgage insurance is going to be less than FHA; if you meet specific income requirements, it can be as much as 75% less than FHA! A lower down payment AND a lower price for mortgage insurance? Sounds like a pretty great deal to us!
Another thing we love about his new loan program is its flexibility in the condominium market. When using an FHA loan right now, you are restricted to buying in FHA-approved condo complexes, which is a small percentage (10% to 30%) of condos in San Diego. With the new 3% down loan program, there is no specific list of approvals the condo needs to be on in order to use it!
We’re really excited about this program, as it opens up a lot more doors for people with a small down payment.
If you have any questions about it, we would love to address your comments and concerns! Just give us a call or shoot us an email for the expert advice you deserve!