With Wells Fargo debuting its program for 3% downpayment loans on homes, other banks have excitedly followed according to a recent article. These low downpayment mortgage options are very helpful to home buyers struggling to save.
JPMorgan Chase announced a program called “Standard Agency 97percent” for first time home buyers. It offers a 3% downpayment plan with a FICO score of 680. To compare, the Wells Fargo “yourFirstMortgage” requires a minimum 620 FICO score for a 3% fixed rate mortgage up to $417,000. Chase and Bank of America are offering similar programs as well.
“We’ve taken all the complexity of the home mortgage lending process, removed it from the front-line consumer, so that it’s easy for them to understand and Wells Fargo is taking care of all the capital markets and other types of complexities behind the scenes,” says Brad Blackwell, executive vice president and portfolio business manager at Wells Fargo.
We can see more and more banks pulling away from the Federal Housing Administration loans, which JPMorgan Chase CEO Jamie Dimon called “too costly and too risky”.
“Mortgages are important to our customers,” Dimon wrote in a letter to shareholders. “For most of our customers, their home is the single largest purchase they will make in their lifetime. More than that, it is an emotional purchase – it is where they are getting their start, raising a family or maybe spending their retirement years. As a bank that wants to build lifelong relationships with its customers, we want to be there for them at life’s most critical junctures.”
Here at RE/MAX Paradise, we agree. We understand the purchasing a home is an important, exciting, emotional decision. We are excited about these new 3% downpayment loans coming from many different banks. They can help you to purchase your first home in Miami, an amazing city to settle down in. Please contact one of our expert agents today with any and all questions about financing a home purchase.