New Low Loans: Affordable Loan Solution plan

[Jeff B.]

The Washington Post is reporting:

• The newest option, known as the Affordable Loan Solution plan, launched Feb. 22. It allows for down payments as low as 3 percent, no minimum cash reserves and loan amounts as high as $417,000 — and, unlike other low-down-payment mortgages, there are no charges for traditional private mortgage insurance. Just by itself, such insurance can sometimes add hundreds of dollars a month to buyers’ costs and make ownership difficult to afford, so this is a big deal. For applicants with thin or no credit bureau files, the program allows for consideration of nontraditional forms of credit history, such as monthly rent payments, utility bills and the like.

Seems a natural fit for first time home owners :)