How a 3% Down Program Can Be Cheaper than 5% – First Meridian Mortgage

Are you dreaming of homeownership but concerned about the upfront costs? At First Meridian Mortgage, we have an exciting solution that can make owning a home more affordable than you think. Our 3% Down Program offers a unique opportunity to save money and achieve your homeownership goals. In fact, you may be surprised to learn that this program can be even cheaper than a 5% down payment option. Let’s explore how this program can help you unlock affordable homeownership and save thousands of dollars.

Generous 2% Down Payment Grant:

Thanks to our partnership with a national wholesaler, we can provide a 2% down payment grant of up to $4,000. This grant can be used towards your down payment or closing costs, significantly reducing your upfront expenses. Whether you’re a Millennial or a Gen Z buyer who has saved 3-5% for a home, this program is designed to make homeownership more accessible and affordable for you. Plus, the down payment and closing costs can also be gifted by a family member, widening the possibilities even further.

Simple Qualification Process:

✅ To take advantage of this incredible program, you need to meet a few requirements.

• First, you must qualify under the Freddie Mac Home Possible Guidelines, which offer flexible and accessible financing options.
• Second, your household income must be below 80% of the Area Median Income (AMI) based on county limits. For example, in the Metro DMV area, the income limit is $112,400.
• Third, while you don’t need to be a first-time homebuyer, if you are, you’ll need to complete a homeownership class to enhance your knowledge and confidence.

💰 Making the Numbers Work in Your Favor:

Now, let’s dive into the financial benefits of our 3% Down Program. Imagine a scenario where you’re considering a 5% down conventional loan versus a 3% conventional loan on May 24, 2023:

🏢 Property Details: Purchase price (condo): $430,000

💼 5% Down Payment: Loan amount: $408,500 Interest rate: 6.510% Principal and Interest (PI): $2,584.68 Mortgage Insurance (MI): $64.68 Total PI and MI payment: $2,649.36

🌟 3% Down Payment: Loan amount: $417,100 Utilize the $4,000 grant to buy down the interest rate to 6.090% Principal and Interest (PI): $2,524.91 Mortgage Insurance (MI): $86.90 Total PI and MI payment: $2,611.81

💰 Total Savings: $48,418 over the life of the loan (including the increase in MI)

By participating in our 3% Down Program, you can potentially save approximately $30,118, plus an additional $21,600 in payment savings, offsetting the increase in mortgage insurance costs of $3,300. These significant savings can make a substantial difference in your financial journey and help you build wealth over time. She was able to also keep $8600 in her bank account and pay less money over the life of the loan.

Flexible Financing for Your Dream Home:

The Home Possible program is a 3% Down program that can be combined with Gifts, and grants to achieve home ownership with less cost. It’s important to note that you don’t need to be a first-time homebuyer to qualify, and you can use gift funds and down payment assistance programs for your entire down payment. This flexibility allows you to structure your finances in a way that best suits your needs and maximizes your savings. This specific 2% Grant is only available through a Mortgage Broker. Mortgage Brokers have a large range of product to choose from if you are not eligible for this program. Give us a call.

Don’t let high down payment requirements hold you back from owning

Please call Kevin Retcher at 703-799-5626 or schedule an appointment online at calendy

Don’t miss out on this incredible opportunity to stretch your dollars and achieve homeownership on your terms.

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