Why would I want a Flex-100 Home Purchase Loan
This is a Fannie Mae Loan and is specifically helpful for first time homebuyers who can afford monthly payments, but cannot afford a down payment. The borrower does not have to put any money down with this loan; he/she only needs to provide 500 dollars for closing costs.
What can I use a Flex-100 Mortgage for, and what are my options
You can use a Flex-100 mortgage to enter the world of homeownership. Homeownership gives you a great deal of financial power, especially after you start building equity. There are a few payment plans you can choose from in conjunction with Flex-100. You can opt for a fixed rate mortgage of fifteen or thirty years, or you can choose an Adjustable Rate Mortgage. With an ARM, your mortgage will be fixed for the first five, seven, or ten years (as per your contract). After the initial time period, your interest rate will change annually.
Why should I get a Flex-100 Mortgage
The Flex-100 doesn’t discriminate between higher and lower incomes; you may qualify for a Flex-100 even if you have enough for a down payment. Fannie Mae allows you to spend your down payment on home repairs or moving expenses, or save it for future mortgage payments.
How can I get a Flex-100 Mortgage
We have Fannie Mae certified lenders. Click here to find out more.
How can my FICO/Credit Score effect my mortgage rate
Your credit score is an important factor in determining your mortgage rate. If you scored between 720 and 850, congratulations, you have good credit, or “A-paper.” If you scored below 660, you may have a difficult time finding a lender who will work with you. The ultimate cutoff score between A-paper and Sub-Prime or Non-Prime lending is 620.
Q: What is the Flex 97? Is it like the Flex 100?
A: A Flex 97 is similar to the Flex 100, but they have differences. With a Flex 97, you will pay three percent of your home’s purchase price as your down payment.
Q: Can I use a Flex-100 Mortgage to buy a vacation house?
A: No, the Flex-100 may only be used to purchase a primary residence.
One more tidbit…
- Flex-100 Mortgages use Fannie Mae’s automated underwriting system to evaluate your application. This system speeds the decision making process.
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