If you are considering purchasing a new home while the prices are still low, some people may try to talk you out of it by telling you that this is not the right time to buy, as everyone is talking about what a “bad economy” we are in right now. But logically, now may be the perfect time to get the home of your dreams and with Fannie Mae’s program, you can expect help in getting the financing that you need.
If you are gainfully employed and are looking to purchase your first home, it is not the time for you to wait for a more “stable” economy. While the supply is high and demand is low, causing the price to fall, and Fannie Mae has a program to help you purchase your first home; you should consider not waiting any longer. Currently mortgage rates are still low but it is starting to climb up and if you don’t lock in your rate now, you might miss out on the low interest rate.
Although Fannie Mae does not give out loans directly themselves they do work in cooperation with banks, mortgage brokers and others to help you qualify for a loan. Millions of borrowers have become home owners because of this government sponsored group. With the government sponsorship, they have a program that is called “Making Home Affordable”.
Working with its partners, Fannie Mae provides several mortgage products:
Biweekly mortgage:
This is where the homeowner pays on his mortgage every 14 days. With this product your benefit is lower payments and paying off the principal faster. This kind of mortgage has a fixed rate. Borrowers usually pay by having their savings deducted from your bank account. Using this mortgage it will take only 22 years to pay off a 30-year mortgage.
Community Solutions:
This mortgage product is specifically designed for teachers, police, firefighters and healthcare workers. These community workers benefit from a 40-year term mortgage and also a lower initial monthly payment via an interest only loan. The Loan to Value can be up to 100% in certain cases and non-traditional credit histories are taken into account.
Community HomeChoice:
This mortgage product is designed for borrowers with disabilities or borrowers with a family member that has a disability. The benefits are similar to the community solution product.
To read more about Fannie Mae, simply go to their website, FannieMae.com.
How Fannie Mae Can Help Homebuyers
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