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Have you been looking for a way to buy a home but can't afford a large down payment? The good news is that you may be eligible for a 97 loan. In this article, we'll explore what a 97 loan is, how it works, and how to qualify.
A 97 loan, also known as a Conventional 97 Loan, is a type of mortgage offered by Fannie Mae. It requires a minimum down payment of just 3%, making it an attractive option for first-time homebuyers or those who don't have a large amount of savings. It's important to note that this loan is only available for primary residences, meaning it cannot be used to purchase an investment property or vacation home.
A 97 loan works in the same way as a traditional mortgage. You'll apply for the loan through a lender, who will evaluate your credit score, income, and debt-to-income ratio to determine your eligibility. If approved, you'll pay a 3% down payment and the lender will finance the remaining 97% of the home's value.
One benefit of a 97 loan is that it doesn't require mortgage insurance if you have a credit score of 680 or higher. If your credit score is below 680, you'll be required to pay private mortgage insurance until you reach 20% equity in the home.
In order to qualify for a 97 loan, you'll need to meet certain criteria. Here are the requirements:
If you meet these requirements, you may be eligible for a 97 loan. Keep in mind that each lender may have their own additional requirements, so it's important to shop around and compare offers.
There are several benefits to choosing a 97 loan, including:
If you're a first-time homebuyer or don't have a large down payment saved, a 97 loan may be a great option for you. It allows you to purchase a home with just a 3% down payment, and if you have a credit score of 680 or higher, you won't have to pay mortgage insurance. Remember to shop around for lenders and compare offers to find the best loan for your needs.
At [Your Company Name], we specialize in helping borrowers find the perfect loan for their needs. Contact us today to learn more about how we can help you achieve your homeownership goals.