Good morning, Tom Heath with the Heath Team at Nova Home Loans. Today is December 14th. and this is our weekly update on Mortgage and Real Estate Related Matters.
As we get to the end here 2020, announcements for program changes in the new year are starting to come out. Couple weeks ago, we discussed the increase in loan limits from Fannie Mae and FHA. Today, I want to talk to you about a very specific program for first time home buyers from Freddie Mac. It’s called the Home Possible program.
Now up until recently, the rules have allowed for a first time home buyer to put 5% down on a multi-unit property. So if you’re getting a duplex where you’re going to live in one, you can actually purchase that with this program of five percent down on a conventional loan. That is changing as of April of 2021. It’s going to go to 85 percent loan to value. Meaning the down payment is increased by 10%.
FHA still remains an option, but if you do have those first-time home buyers looking for a multi-unit property to live in one, rent the others out, I recommend they get in touch with their lender very soon and try to get something explored for the Freddie Mac Home Possible program. Anything after April 1st will not qualify, so they’re going to want to be in contract early in the year if this is the path they’re going to take.
As always, head over to our website TheHeathTeam.com for more information on this or any of our other topics. Always feel free to reach out to us and let us know the questions that you have that we can answer every Monday. Until next Monday, hope you have a great week and we will talk to you soon!