Local lending market roars back
Freddie Mac’s Home Possible Advantage program, Quicken offers a 1 percent down payment option, kicking in 2 percent in grant funds to make a 3 percent nut. Bank of America, in partnership with Freddie Mac and Self-Help Ventures Fund, offers a 3 percent down payment loan with no mortgage insurance required.
- Available from most lenders, Fannie Mae HomeReady loans allow a minimum of 3 percent down and the ability to qualify using the income of everyone in the household.
- FHA-insured loans starting at 3.5 percent down are available from most banks, and now allow credit scores as low as 500.
“They must have a FICO score of 680 or above, earn less than the median income for their county, and their debt-to-income ratio must be 45 percent or less,” Quicken Vice President Bill Banfield, said of his company’s 1 percent program. (FICO is the lending industry standard for rating consumer credit risk.)
A loan officer with Primary Residential Mortgage, Scott DiGregorio is comfortable with the conventional 3-and-a-half percent down mortgages he’s been writing; it’s the no income verification loans that give him pause.