Alt 97

Freddie Mac has been providing lenders and borrowers with various types of mortgage offers that can fit everyone’s needs. One of these is the Freddie Mac Alt 97 Mortgage plan. This mortgage program is defined by its flexible down payment options for the borrower.

The Alt 97 Mortgage plan is for borrowers that have good credit scores but have limited savings for a down payment. This mortgage gives the first time home buyer a required down payment as low as five percent.

The property type available for this offer is a 1-unit owner occupied primary residence; this includes properties under development and condos. Eligible mortgage products are the 15-, 20-, and 30-year fixed-rate mortgage programs. The transaction types are purchase and no cash out refinance. The maximum loan to value or LTV is at equal or greater than 90% and not greater than 95%.

Being a fixed-rate mortgage program, the borrower has the comfort of a stable monthly payment. And as a perk, the Alt 97 offers a low initial down payment, so even though fixed-rate mortgages have higher interest rates, one can be secured by the low initial down payment that one can remain financially sound. This offer really is a popular one, another plus in this program is that it requires no minimum income amount and is regardless of geography.

The Alt 97 mortgage plan allows those with good credit histories to have benefits for all their hard work in attaining their credit score; the mortgage also helps maintain or even increase the borrower’s credit score, giving him or her even more assurance.

If you are a person with a good credit history and a good credit standing and wants to get a new house or a condo, this mortgage plan is very suitable for you. Not only can it get you a new house will a low down payment, you can also improve your credit score.

Questions:

1) What state is this program available in? All

2) Is there income limitations (if yes how much)? No

3) What is the maximum LTV (loan to value)? 95%

4) What is the minimum credit score required? 620 fico

5) What is the maximum DTI (debt to income) ratio? 30%

6) Are you required to be any of the following? No

o Civil servant o Fire Fighter o Teacher
o Military

7) Is this program for primary residence’s only? Yes

Can this program be used to buy a home? Yes

9) Can this program used to refinance a home? Yes

10) Can this program be used for a manufactured home? No

11) Can this program be used for a Condo? Yes