Fannie Mae on Thursday announced an expansion of the company’s REO program, HomePath.com.

HomePath already offers owner-occupant buyers 3 percent down with no mortgage insurance. The expansion gives these home buyers up to 3.5 percent of the final sales price to use toward paying closing costs. A home warranty also will be available.

In addition, real estate practitioners who represent owner-occupants will receive a $1,500 bonus. Eligible offers must be submitted on or after Sept. 23 and must close by Dec. 31.

Source: Fannie Mae (09/23/2010)

The days of easy qualifying, no money down and stated income type financing have all but blown away. In our market today, lenders are requiring more money down and higher credit scores.  There are, however, a few alternative options to consider if you are cash strapped; USDA, FHA, VA, and Down Payment Assistance programs

VA – Veterans Administration
The VA allows a qualified veteran to purchase a home with ZERO down as well and has offered this program for years! Interest rates for VA loans may be slightly higher than FHA loans, but they are well within market guidelines and offer veterans a terrific opportunity to finance their home.  Check with your lender to find out details on the VA guidelines to be sure.

The days of easy qualifying, no money down and stated income type financing have all but blown away. In our market today, lenders are requiring more money down and higher credit scores.  There are, however, a few alternative options to consider if you are cash strapped; USDA, FHA, VA, and Down Payment Assistance programs

FHA – Federal Housing Administration
FHA is an old, but now popular option to consider when purchasing a home with little money down. Currently, FHA requires a down payment of 3.50%.  While it isn’t ZERO down, it is definitely an affordable option for homes located in a metropolitan area.

Benefits of FHA financing include reduced monthly mortgage insurance and low market interest rates.  Also, FHA allows the borrower to obtain their down payment from a gift.  These gift funds can come from a relative, church, non-profit entity or even an employer.  To further reduce required funds, the seller is allowed to contribute to the buyer’s closing costs as well.

The days of easy qualifying, no money down and stated income type financing have all but blown away. In our market today, lenders are requiring more money down and higher credit scores.  There are, however, a few alternative options to consider if you are cash strapped; USDA, FHA, VA, and Down Payment Assistance programs

USDA – Rural Housing Development Financing

The United States Department of Agriculture has for years made ZERO down financing for homes located in rural areas. While this may not sound appealing at first, the rural areas depicted on their maps have, in many cases, crept into suburban metropolitan areas.

In the Phoenix metro area, Queen Creek, Buckeye, Goodyear and even Maricopa are areas that may qualify. Lenders have access to the USDA website to determine if the property you’re considering qualifies for this loan program.  With NO MONEY DOWN, a buyer can purchase a home and possibly finance even their closing costs!