Local News

Fannie Mae Offers Flexible Mortgage Options

Posted April 29, 1998

— The average down payment on your average home in Wake County will cost you a cool 16,000, even without the closing costs. But a new program promises to make the American dream more of a reality.

Starting in June, theFannie Mae Foundationis launching a new type of mortgage with a small down payment and all kinds of flexibility for the buyer. Most people don't know there are already similar programs in place that make getting into a home just as easy.

"It took us about a year and a half after we got married to put together the savings for the downpayment," explains first time homeowner, Steven Baker. "It was kind of difficult. It required a lot of discipline."

Coming up with the down payment and closing costs is a problem for most first time buyers. But there are ways to get into a home with 2-3% down, or possibly no money down, thanks to the community home buyer program.

Bank broker Robert Jackson says these programs have enabled people that don't have a lot of savings to go ahead and get started on their new home purchase.

Here is how it works:

  • Jackson sits down with the buyer and calculates income and debt.
  • He determines how much the buyer can afford.
  • Then a realtor like Jimmy Williams takes that information and finds a house to fit the buyer's needs.

    All you need is good credit. There are no strings attached.

    "Often times people are just skeptical of something that sounds too good," says Williams. "And they won't try it just because of this, and they need to hear someone else who they trust tell them that, rather than just hear about it on television or the newspaper."

    It's the perfect program to speed up the home buying process. Baker says with such a program, it would have been possible for him and his wife to get into a house at least eight months sooner.

    "Customers get genuinely excited when you can sit down in front of them and explain to them how they can buy a $100,000-$150,000 home with $2,000-$5,000 out of pocket with a $800 a month payment," Jackson explains. "They leave your office refreshed."

    Ask your realtor or broker about other programs that can get you into a home, with a low down payment. Starting in June, theFannie Maeprogram will be available everywhere.

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