Posts Tagged ‘3% down payment’

The Return of the 97% Conventional Mortgage Loan

December 22, 2014

return_of_97_loanDuring the “anything-goes” mortgage days, 97% LTV (3% down payment) mortgages were readily available to homebuyers. In fact, a 97% LTV wasn’t a big deal since many mortgage lenders were offering the 100% mortgages. Then the mortgage foreclosure crisis hit and the mortgage industry experienced extreme new regulation and tightening of loan programs.

Over a year ago in December 2013, Fannie Mae and Freddie Mac both announced that their specialty First Time Homebuyer 3% Down Payment loan Programs were also being discontinued. Now, almost one year to the date, both Fannie Mae and Freddie Mac have both announced the RETURN of the 97% Loan Programs for First Time Homebuyers. (more…)