More Loan Products Provide Lower Downpayment Requirements

According to a recent Bankrate Money Pulse survey, 29 percent of consumers who don’t own say it’s because they can’t afford the downpayment. Downpayment concerns are still prevalent among current buyers, even though many are able to make monthly mortgage payments. You can help get buyers off the fence with a variety of loan products offered through Key Mortgage.

“IHDA, Fannie Mae and Freddie Mac have entire suites of programs with one goal in mind: helping folks purchase a new home,” said Steve DiMarco, president of Key Mortgage Services. “These programs are out there for you and your clients to take advantage of, and we have the capabilities and knowledgeable staff to make it happen.”

Here are a few of the loan programs you have access to when you partner with Key Mortgage:

Home PossibleⓇ – Expand your reach in rapidly growing markets for first-time homebuyers and low- to moderate-income borrowers with this Freddie Mac program. Home Possible provides stable monthly payments with fixed-rate mortgages, flexible sources of funds, reduced mortgage insurance coverage levels, and a minimum down payment of 3 percent.

HomeReady – This program was designed by Fannie Mae for creditworthy, low- to moderate-income borrowers with expanded eligibility for financing homes in designated low-income, minority and disaster-impacted communities. Borrowers put down as little as 3 percent and receive flexible funds for downpayment and closing costs with no minimum contributions. The buyer must attend homeownership education to assist in the home purchase process.

@HomeIllinois and 1stHomeIllinois – IHDA’s @HomeIllinois and 1stHomeIllinois are multi-faceted programs that provide 30-year, fixed-rate, affordable loans and grants of up to $7,500 to help with downpayment or closing costs. Buyer’s must complete homeownership counseling and contribute either $1,000 or one percent of the purchase price.

For more information, please contact a Key Mortgage loan officer.