3% down conventional mortgage, min. credit score 620.
You can now put down 3% when buying a home if you have at least a 620 credit score.
If you are buying a home the 3% down payment can be all given to you as a gift from a family member, and if you have the seller pay your closing costs you can now buy a home with a conventional mortgage with no money out of your pocket.
You do not need to be a first time homebuyer which means you have not owned a home within the last 3 years to qualify for the 3% down payment program.
If you have a good credit score above 740 you could avoid PMI altogether, Barclay Butler Financial can do a LPMI (lender paid mortgage insurance) loan with very little adjustment to the rate.
This 3% down program is available on single family homes, townhomes, condos , and manufactured homes. You can not buy a multi unit property with 3% down, however you can still buy up to a 4 unit property with 5% down. Again the entire down payment can be gifted from a family member.
If you want to refinance you will only need 3% in equity or 97% LTV (loan to value). This can be very beneficial if you want to lower your monthly PMI or even remove it all together. Your credit score will have to be higher than 620 if you want to lower your monthly PMI on a refinance. I would say you need to be at least a 680 credit score.
The 3% down payment can be an alternative to the FHA loan program especially on a condo. FHA loans have the UFMIP (Up front mortgage insurance premium) and they also have monthly MIP (Mortgage insurance premium).
A conventional loan will be a little more difficult to qualify for than an FHA mortgage. Conventional loans have lower debt to income qualifications and the credit scores have to be higher than an FHA loan. With FHA you only need a 500 credit score not a 620 credit score. Conventional loans are also tougher on significant derogatory credit issues, like bankruptcies, foreclosures, and short sales. Lastly conventional loans require you to pay off any judgement you may have on your credit report versus FHA which will allow you to setup a monthly payment plan.
Barclay Butler Financial Inc. is currently offering the 3% down program. If you are interested in either purchasing or refinancing with this program please contact us via phone or text at 224-420-9990 or email (bbutler@barclaybutlerfinancial.com)
Barclay Butler Financial Inc. also offers numerous other mortgage programs. You can click here to see our brochure
