New Program Allows 3% Down Payment | First Time
Homebuyers Ft. Lauderdale
Fannie Mae just announced a new program for first time homebuyers allowing a 3% down payment to purchase a home. This is not an FHA loan! This is great news for Ft. Lauderdale area homebuyers, as the prices have gone up and many people do not have the 20% normally required for Fannie Mae backed loans to put down on a new home. Only one borrower needs to be a first time homebuyer. Fannie Mae considers a first-time homebuyer someone who has not owned a home in the past three years. But wait there’s more! This program is also in effect for those with an existing Fannie Mae loan that would like to refinance.
Right now it may make more sense to buy than rent with the skyrocketing rents in the Ft. Lauderdale area. For example, we have a one bedroom condo in hot Wilton Manors listed for $82,500. This unit rents from $800 – $900 per month. If you put 3% down ($2,475), you’d be financing $80,025. Let’s say your interest rate is 4% for a 30 year fixed rate loan. Add in taxes, and the condo maintenance payment plus private mortgage insurance (PMI) and your monthly payment is around $520.00! You can’t find a decent one bedroom in Wilton Manors to rent for that. Check out our mortgage calculator here to play around with mortgage payments.
For more information see the news release from Fannie Mae or contact your lender. We have lenders to recommend if you do not currently have one – see our resources page.
**Note: Above numbers are estimates. We are not mortgage brokers. Please consult your lender for exact figures.
Contact us anytime to find a home in the Ft. Lauderdale area at 954-895-8999