Fannie Mae 3% Down an Excellent Alternative to FHA for Colorado Springs Homebuyers

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Fannie Mae 3% Down an Excellent Alternative to FHA for Colorado Springs Homebuyers

With the cost of FHA mortgages increasing next month, the Fannie Mae Flex mortgage is an excellent alternative to FHA financing and possibly an even better overall solution for some homebuyers given the increased monthly mortgage insurance premium on FHA.

The Fannie Mae Flex program with its minimum down payment of 3% and flexible guidelines is a great replacement to FHA financing and in all honesty a better option for many buyers when you compare the two side by side.

Benefits of the Fannie Mae Flex Mortgage:

• NOT limited to first time homebuyers
• NO income or sales price limits (loan limits do still apply)
• 97% loan to value maximum including any financed mortgage insurance
• 105% total loan to value allowed with eligible Community Second mortgages
• Gift or grants can be used for a down payment
• Seller concessions are limited to 3% of purchase price
• Single family primary residences only (including eligible condos)
• Flexible mortgage insurance options include standard monthly payments or a financed option which allow for the mortgage insurance to be paid through a slightly higher interest rate or paid at closing.
• No homebuyer counseling required.

Surprisingly, most lenders I speak to are not even aware that this option is still available.  Granted, with the loss of so many mortgage programs, it is tough to keep up these days!

The good news is that there are financing choices even in our restricted lending environment.  If you have clients entertaining an FHA loan, make sure they look into the Flex 97.  I’ve included a handy marketing flyer on the advantages of the Fannie Mae Flex 97 that you can swipe and add your information to.  It’s a great way to educate your clients on the details of this alternative to FHA.