The government-sponsored enterprise and U.S. Bank partnered with Housing Wire on a recent webinar titled, “The secret to closing more 3% down mortgages,” back in March. Since then, lenders have slowly rolled out 3% and lower mortgage programs backed by Freddie, finally helping give a strong push toward putting more people into home.
Fifth Third Mortgage is the latest lender to enter the slowly growing arena of mortgage lenders offering low down mortgages, taking it a step further by announcing — for those who qualify — a zero down payment mortgage program.
This is on top of Bank of America, Wells Fargo, JPMorgan Chase, and many other major lenders already launched into 3% down loan programs earlier this year.
Similar to others in the space, Fifth Third’s program is paired with Freddie Mac’s Home Possible Advantage Mortgage, a product with a 3% down payment and reduced mortgage insurance premiums.
Its down payment assistance program offers 3% of the purchase price in down payment assistance, up to $3,600, for low-income borrowers or those purchasing in a designated low-income area and financed through Fifth Third.
Fifth Third said that it plans to keep the product at least through the end of the year and potentially through 2017.
It’s not accessible to everyone across the U.S. though. The program is only available in the bank’s 10-state footprint, which includes Michigan, Indiana, Illinois, Kentucky, Tennessee, Ohio, West Virginia, North Carolina, Georgia and Florida.
And the entity behind most of these low down payment programs? Freddie Mac. ~ newsyworldys