Hi. This is Casey Lown with Strategic Mortgage Solutions here for another mortgage moment update. Hey, so I’ve got some great news. Fannie Mae recently rolled out an initiative to offer first-time homebuyers that met a certain income threshold, a discount that they may otherwise not get on a standard conventional 30-year fixed and 15-year fixed mortgage. Now, Fannie Mae offered a similar type of discounting program several years ago that’s still in effect called the Home Ready Program.
The problem was
that the income maximum threshold was set much lower at 80% of the area median income. The new discount program offers up to 100% of the area’s median income. It’s a huge opportunity for growth for a lot of first-time homebuyers. The fact is, the vast majority of Oregonians will find themselves qualifying for something like this.
And here’s what I mean
In Lane County, or you can think of it as Eugene/Springfield area, the new maximum limit under this program is for applicants to make up to $84,000. In Albany, it’s $84,900. In Salem, it’s $89,600. And in the Portland area, it’s $106,500. So the income allowance has now grown significantly. Now, what is the discount that somebody gets?
Well, oftentimes
when you compare a standard conventional mortgage from a lender that’s offering a loan under the Fannie Mae guidelines, that discount could be anywhere from a .25% of a lower rate to a .375% lower rate. That’s pretty huge in comparison to the standard mortgages. If you were somebody that was applying for a $400,000 loan, that kind of discount could mean that your payments are $100 – $120 less than it otherwise would be. Or another way to look at it is that you’re purchasing power just improved by $15,000 to $20,000 without even lifting a finger.
If you, or know somebody that’s been on the fence,
maybe they’ve been thinking about buying a house but last time they checked interest rates were high. If they’re a first-time homebuyer, you should let them know about this discount.
And better yet,
let them know that interest rates have been trending downward ever since they peaked in October. They may find that the interest rates today, and that discount, could unlock an opportunity for them to be able to afford a home that they didn’t think was possible just a month or two ago. I would recommend that they circle back and talk to the lender that originally talked to them about mortgages and their financing opportunities. But also have them check in with one or two additional places, and in particular, with an independent mortgage broker.
Oftentimes,
independent mortgage brokers can unlock financing opportunities that retail banks and lenders can’t because they’re shopping national wholesale lending channels in order to find the client the best rate and fee opportunity that they can. Anyways, that’s it If you have any questions, shoot me an email or call or reply to this email. Have a great day.
