New Mortgage Program Helps Buyers Overcome Barriers to Homeownership

New Hampshire Housing launches new program featuring low downpayment and no mortgage insurance

Today’s homebuyers face a much more difficult entry into their first home than was the case before the Great Recession. While the safeguards that have been put into place to prevent another market crash are necessary, they can create hurdles for many who are trying to enter the market.

Two of the hurdles that buyers must overcome are the downpayment requirements that most lenders now require and, if borrowers cannot put a 20% downpayment on a home, the upfront and monthly costs of mortgage insurance.

To help buyers overcome these barriers to ownership, New Hampshire Housing has launched a new mortgage program called “Home Preferred No MI,” a low-downpayment mortgage that does not require the borrower to pay mortgage insurance. This program is ideal for borrowers with good credit who have limited funds for downpayment and closing costs, and who are seeking a lower monthly mortgage payment. To qualify for the program, borrowers must be creditworthy, meet certain income limits and complete a homebuyer education course.

With Home Preferred No MI, eligible borrowers can qualify with as little as a 3% downpayment. In addition, there is no upfront or monthly mortgage insurance payment required. The program also offers lower monthly payments when compared to conventional loans with mortgage insurance or FHA loans, which recently experienced an insurance rate increase.

“New Hampshire Housing’s Home Preferred No MI is designed to help Granite Staters accomplish and then sustain homeownership,” said Dean Christon, New Hampshire Housing’s Executive Director. “Our low downpayment requirements and the new option of no mortgage insurance help make homeownership a reality for more creditworthy borrowers. Furthermore, by requiring homebuyer education, borrowers are more prepared for the responsibilities of homeownership.”

Home Preferred No MI is a special lending initiative between Fannie Mae and New Hampshire Housing, along with other housing finance agencies in the country.

“Housing finance agencies, such as New Hampshire Housing, continue to make homeownership affordable and sustainable for working families,” said Jennifer Whip, Vice President for Customer Engagement, at Fannie Mae. “Their lending approach includes education and counseling that prepares borrowers for the responsibilities of homeownership. As part of Fannie Mae’s support for the housing market, we provide housing finance agencies with options that help creditworthy low- and moderate-income borrowers achieve the goal of buying a home.”

Home Preferred No MI joins New Hampshire Housing’s suite of mortgage programs designed to help low- and moderate-income families and individuals achieve the dream of homeownership. For more information about Home Preferred No MI, borrowers can go to www.GoNewHampshireHousing.com.

Leave a comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: