South Pacific Financial Corporation announces the availability of the new Fannie Mae 97% LTV program

The new program lets homebuyers put down as little as 3%.

Irvine, Calif., Jan. 26, 2015 /PRNewswire/ -- South Pacific Financial Corporation (SPFC) has announced the availability of the new Fannie Mae conventional 97% loan-to-value program.

This conventional program will help homebuyers who would otherwise qualify for a home mortgage but may not have the financial resources to make a large down payment.

“There’s a misconception that all conventional mortgage loans require a 20% down payment,” said SPFC CEO John Johnston. “That’s not so and we’re excited to offer this loan to prospective homebuyers.”

According to consumer research conducted by Fannie Mae, the primary barrier to homeownership for first-time homebuyers is saving money for down payments and closing costs.

This constraint on first-time homebuyers is evident in the housing market. According to NAR’s 2014 Profile of Home Buyers and Sellers, the share of first-time buyers fell from 38% in 2013 to 33% in 2014, the lowest level in 27 years.

The situation is even worse when it comes to new home sales. According to the National Association of Home Builders, normally about 29% of the new homes are sold to first-time homebuyers. Currently, that number is 16%, nearly half the usual rate.

“This program is significant because too many first-time homebuyers are feeling locked out of the housing market,” said Dan Malouff, SPFC Executive Vice President of Capital Markets.

In addition, eligible homeowners who have a Fannie Mae-owned loan can refinance their loan up to the 97% LTV level under a limited cash-out option.

“Our new 97% LTV offering is simply one way we are working to remove barriers for creditworthy borrowers to get a mortgage,” said Fannie Mae Executive Vice President Andrew Bon Salle. “We are confident that these loans can be good business for lenders, safe and sound for Fannie Mae and an affordable, responsible option for qualified borrowers.”

“When Fannie Mae launched this product, they were concerned that mortgage companies might not participate,” said Johnston. “We saw this as a bold move on behalf of Fannie and so decided we wanted to participate.”

About South Pacific Financial Corporation
Founded in 1982, Irvine, CA-based South Pacific Financial Corporation (SPFC) offers a diverse array of mortgage loan programs, including Conventional, Jumbo, FHA, VA and USDA loans at competitive rates. At SPFC, we understand that we reach our goals by helping others reach theirs. Our core values are to do what is just, right and fair for our customers, employees, and business partners, while trusting them to do the same in return. In Mortgage Executive Magazine (2014), SPFC was voted one of the 50 Best Mortgage Companies to Work for in America.

For more information on SPFC, call (949) 365-4959 or visit www.spfcnet.com.


31f1e221 b3ee 4e19 811c 4a7beb2a2666 4e7b57e5 3e6d 41bb 8681 36821249a20b f58358bb 635f 49ad 8441 3b50136ccbb5 b9de084a d410 4f35 ba30 4e75fffd2a5c 149ab026 9173 4371 a9b0 bca649021939 85c9820e 4cc3 4efd 87eb f8101759397b 555b9d4c 32c0 4bf6 aacd 64b09d1a606d df55d024 a647 4f41 92db bca3419f40ca 4d43db7d 86d9 4ab7 8e11 bbb0ef0f6011 d00a3bdb 30e7 4112 9a4e d26728d27f3b 66c05275 8762 4860 a230 8bbd6c7a62f5 67c49119 572f 41c7 83ee 43df0c9ee6af 2dc086ae 2160 47e5 8190 e248c0ec06e7 c8d8b958 e9ea 4dd0 8451 ee3553713dc2 3ebf95ac 88bb 44a1 b0a3 6ecbb7126365 5099160b 6861 486e 99a2 89b355e1b49e 7df8ec55 bc6d 4e50 92eb 632d46fca253 0d73f7fb 93c6 48a6 a586 3cde626234bf e1e01f55 bd46 4558 94f3 c4c11743652b 3db3e664 7644 42fc 9377 e3c0f806857c 8ae305c5 2458 4325 825b b0c9d2aa71d0 7139410b b905 4aa1 8d92 4ee3d03e7837 b2e88025 158e 4c03 a591 6b68c31b9999