Obtaining a Mortgage About to Get Easier for New Fairbanks, Anchorage Homebuyers
If you're a first-time homebuyer in Alaska or have simply not owned a home in several years, obtaining a mortgage is about to get easier for you. All thanks to new lending guidelines from Fannie Mae and Freddie Mac that will allow for down payments as low as 3 percent.
This week, both mortgage giants announced the new 3 percent down payment options on home purchases. For Fannie's program, first-time homebuyers can start to take advantage of the low down payment option as early as December 13. For Freddie, the new program will officially roll out on March 23, 2015.
These new mortgage guidelines should expand access to homeownership for thousands more—especially Millennials in Fairbanks and Anchorage—who have not been able to achieve the larger 20 percent down payment. First-time homebuyers, for instance, have been out of the market for the majority of this year and will now have more achievable means of purchasing a home.
"The new lending guidelines will enable creditworthy borrowers who can afford a mortgage, but lack the resources to pay a substantial down payment plus closing costs, to get a mortgage with 3% down," said the director of the Federal Housing Finance Agency. "These underwriting guidelines provide a responsible approach to improving access to credit while ensuring safe and sound lending practices.”
Alaskan homebuyers ready to jump into the market with these new 3 percent down payment mortgage programs will be required to take out private mortgage insurance (PMI), have a credit score of at least 620 and offer all of the necessary documentation to prove their income, assets and job status. Homebuyers will also be required to receive homeownership counseling to further eliminate lender risk.
While both Fannie and Freddie already offer mortgages with 5 percent down, the new 3 percent down mortgage is a great option for first-time homebuyers in Fairbanks, Anchorage, Eagle River, Palmer or North Pole ready to become homeowners in the new year.
For new homebuyers, navigating a home purchase in Alaska tends to feel overwhelming. We're here to eliminate that feeling! Madden Real Estate can be your guide to the Alaskan real estate market this coming year.
An experienced real estate team can walk you through the home purchase from start to finish, but more importantly, your agent can save you money. Remember, we have been there before and we do the negotiating for you. Madden Real Estate will go to work for you, do all of the footwork and ensure you're getting the best possible deal on your home purchase or home sale.
Take a look at the infographic below for more ways a real estate agent can save you money!