Mortgage TIPS for the Week
At last, a Conventional 3% down program that competes with FHA. Fannie Mae’s ‘Home Ready’ allows for average credit but delivers with a competitive rate and reduced PMI.
|2||The max loan amount is $424,100 ($358,800 for FHA) and the PMI is cancellable (unlike FHA). The 3% down can also be from savings, a gift, or even an approved 2nd Mortgage.|
|3||The buyer has to go through an education course and there are income limitations based on the property address, so be sure to check with your Shelter Loan Officer for eligibility.|
|4||Last week, as expected, the European Central Bank announced plans to extend its bond purchase program by nine months while reducing monthly purchases in half.|
|5||The White House is expected to announce the next Federal Reserve Chairman this week from Jerome Powell, a current Fed governor, or John Taylor, a Stanford Univ. economist.|
|6||Powell is the heavy favorite and aligns most closely to Janet Yellen’s current policy, while Taylor is more conservative and favors a more rapid increase in short-term rates.