3% Down Mortgage with No PMI – Lendexa Mortgage

3% Down Mortgage
with No PMI

No PMI Required! PMI Required! PMI Required! PMI Required! PMI Required! PMI Required! PMI Required! PMI Required! PMI Required! PMI Required! PMI Required!

Benefits

Eligibility

Minimum 3% down payment
Minimum credit score of 640
Property must be located within certain assessment areas
Buyer and their spouse/domestic partner cannot currently own residential property
Income should be under 80% of the area median income OR no income limit applied if the property is in a Low-to-Moderate Income (LMI) census tract

Our 3% Down Mortgage with No PMI program features a 3% down payment and eliminates the requirement for private mortgage insurance (PMI) – and offers exceptionally low, competitive interest rates. At Lendexa Mortgage, we want to ensure your home purchase is something you can comfortably afford over the long term.

Key Benefits of Lendexa 3% Down Mortgage with No PMI

No PMI: You can bypass PMI despite having less than 20% down, saving you a significant amount of money over the lifespan of the loan.
Manageable Monthly Payments: Our program offers an array of mortgage terms and interest rates to help you find a monthly payment that fits your budget.
Flexible Credit Guidelines: Our program’s flexible credit guidelines can make qualifying for a mortgage easier.
Competitive Interest Rates: Unlike many other “No PMI” programs that simply raise rates so that the lender pays the mortgage insurance, our rates are competitive and on par with standard conventional loans.
Perfect for Condominium Buyers: Drop the PMI to make room for your HOAs and avoid the restrictive HOA approval processes of government loans.

Eligibility Requirements for Lendexa 3% Down Mortgage with No PMI Program

Down Payment: You must be able to put at least 3% down. This can come from a family gift.
Minimum Credit Score: Applicants need a minimum credit scoreof 640 to qualify.
Property Location: The property must be located within certain assessment areas.
Property Ownership: Buyer and their spouse/domestic partner can’t currently own residential property.
Income and Loan Limits: Your income should be under 80% of the area median income OR there is no income restriction if the property is in a Low-to-Moderate Income (LMI) census tract. The loan amount should not exceed $726,200.

What Makes This Program So Powerful?

Homeownership Accessibility

The program enhances homeownership accessibility for low-to-moderate income borrowers, making it a potential key to affordable homeownership1. It also encourages buyers of all income levels to purchase in low-to-moderate income census tracts of the assessment areas to revitalize communities and grow the homeownership rate.

Avoid PMI Altogether

With this program, you can bypass private mortgage insurance even without a 20% down payment. This can amount to hundreds of dollars in monthly savings, and thousands of dollars in savings over the life of your loan.

Lower Upfront Cost

Compared to conventional loans, our program allows you to avoid PMI with as little as a 3% down payment, significantly reducing the upfront cost of buying a home. Lendexa mortgage can issue a lender credit to help cover your closing costs, too, if needed.

Reduced Monthly Payments

Not only is your payment lower than the rest by dropping PMI, but you are also able to obtain extremely competitive interest rates. Many lenders who offer programs with “No PMI” simply pay for your PMI premiums through a lender credit, which will always come at the cost of a higher rate.

This program does not engage in that practice, and truly has PMI completely waived by the without a higher rate.

Property Location: A Key Consideration

When considering Lendexa Mortgage 3% Down Mortgage with No PMI Program, it’s crucial to understand the property location guidelines. Our program is designed to bolster housing development and homeownership in specific assessment areas. These areas are often identified as regions where homeownership rates could benefit from bespoke financial products.

For a property to qualify for our unique program, it must be located within predefined assessment areas. This stipulation encourages investment in these locations, supporting the local economy and community development. Before proceeding with the application process, prospective homeowners should check if the property they’re interested in falls within the designated areas. Our team at Lendexa is always ready to assist you in determining whether your property of interest is located within the qualifying regions.

Income and Loan Limits: Balancing Affordability and Risk

At Lendexa mortgage, we’re committed to making homeownership more accessible while ensuring the financial security of our borrowers. This commitment is reflected in the income and loan limits set for our 3% Down Mortgage with No PMI Program.

To qualify for our program, your income should be under 80% of the area median income, Or, buyers of all income levels can purchase if the property is in a Low-to-Moderate Income (LMI) census tract. These income guidelines are designed to ensure that the program benefits those who need it most, and to encourage investment in areas that need it the most.

Additionally, our program stipulates that the loan amount should not exceed the base conforming loan limit, which is $766,550 in 2024. This loan limit is set to balance the affordability for the borrower and the risk associated with lending.

This conforming loan limit is adjusted annually to reflect changes in average home prices. If you’re unsure about the conforming loan limit in your area, our team is available to provide the necessary guidance.

Long-Term Impact of a 3% Down Mortgage with No PMI

Not only does our program offer immediate financial relief, but it also provides substantial long-term benefits. Over the course of your mortgage, the money saved from not having to pay PMI can be significant, well into the hundreds or even thousands per year.

Putting this money back in your pocket means that you pay off your mortgage faster, invest in home improvements, or even start saving more aggressively for your future

Frequently Asked Questions

Who is eligible for Lendexa Mortgage 3% Down Mortgage with No PMI program?

The program is designed for homebuyers with a minimum credit score of 640. The property must be located within certain assessment areas. The borrower’s income must either be under 80% of the area median income or there is no income restriction if the property is in a Low-to-Moderate Income (LMI) census tract. The loan amount should not exceed the base conforming loan limit.

How does this program compare to conventional loans?

At its core, this program is a conventional loan and enjoys many of the same flexible loan guidelines. One big benefit here is that the HOA and condo approval process is the same as for FNMA and FHLMC loans, avoiding the more restrictive HOA approvals processes other loans require.

But, unlike typical FNMA and FHLMC conventional loans where borrowers must put down 20% of the home’s purchase price to avoid PMI, the 3% Down Mortgage with No PMI program allows borrowers to bypass PMI with as little as a 3% down payment. This significantly reduces the upfront cost of buying a home and makes homeownership attainable for those who may not have a large sum of money saved for a down payment.

How does the 3% Down Mortgage with No PMI program affect my monthly payments?

One significant advantage of this program is the potential reduction in your monthly mortgage payment. By eliminating the need for PMI, the program allows you to keep your monthly payments lower.

This can be especially beneficial for first-time homebuyers, those with tight monthly budgets, or those looking to purchase condominiums One way to deal with the costs of Homeowner Association Dues (HOAs) is by dropping PMI from your payments.

Your Journey to Homeownership: Applying for the 3% Down Mortgage with No PMI Program

Applying for the 3% Down Mortgage with No PMI Program with Lendexa Mortgage is a straightforward process, designed to put you on the path to homeownership as smoothly and swiftly as possible. Here are the steps to guide you along your journey:

Contact Lendexa Mortgage: Contact our team at Lendexa Mortgage and we will help you determine whether you meet the eligibility criteria. We’re available seven days a week to answer your questions and guide you through the application process.
Assessing Your Eligibility: This involves checking whether you meet the income requirements, ensuring your credit score is above 640, and verifying the property you’re interested in is located in a qualifying area.
Submit Your Application: You can fill out our online application at any point – the sooner it is submitted, the sooner we can start preparing your loan approval! Our application will ask for details about your financial status, employment, and the property you wish to purchase (if you’ve already found one). Be sure to fill out the form accurately and as completely as possible.
Documentation: After submitting your application, you will be asked to provide documentation to support your application. This may include pay stubs, tax returns, and bank statements, among other things. Our team will guide you through this process to ensure you provide all the necessary documents.
Negotiate and win an offer for your desired home: Lendexa Mortgage Partners with hundreds of extremely talented and experienced Realtors who can help you negotiate and submit winning offers. We are always happy to make a personalized referral if needed.
Underwriting: Once all your documents have been submitted and reviewed, your application will go through the underwriting process. This is where the lender will review all the information provided and decide whether to approve the loan.
Loan Approval and Closing: If your application is approved, we’ll move forward to closing the loan. During closing, you’ll sign all the final documents, and the loan funds will be disbursed to complete the purchase of your home.

Remember, our team is here to assist you every step of the way, making the application process as seamless and stress-free as possible. With Lendexa Mortgage, your dream of homeownership is within reach!

Taking The Next Step With Lendexa Mortgage

Ready to make your dream of homeownership a reality? At Lendexa Mortgage, we’re eager to guide you through this exciting journey. Our 3% Down Mortgage with No PMI Program, with its 3% down mortgage, no PMI requirement, and very competitive rates, is designed to make homeownership more attainable and affordable. Programs like this don’t often come around, so we encourage buyers to take advantage of it now while it’s available!

Reach out to us today and let’s take the next step together. With our expertise and dedication to your success, we’re confident that your path to owning a home will be smoother and more rewarding.