Fannie Mae Brings Back The 3 Percent Down Payment Home Loan
Fannie Mae has announcement that it will reintroduce 97% financing for single-family homes in favor of the present 95%.
What this means to you is that you can now get a Fannie Mae loan with a 3% downpayment instead of 5% In order to be eligible for 3% down financing, you must be a first time homebuyers (or have not owned a home in the past 3 years), you must be purchasing a single-family home (manufactured homes are not eligible) and it must be approved by Fannie's automated underwriting system Desktop Underwriter (DU) that will determine your reserve requirements (usually enough for a few months payments).
3% down loans are also available for refinancing single-family, primary residence, condos, or existing Fannie Mae loans. Mortgage insurance requirements will remain the same as they used to be when Fannie offered 97% financing.
There are a variety of opinions with respect to this re-introduction of 3% down mortgages by Fannie Mae. Some think that it was programs like this that led us into the housing bubble and collapse a few years back. Others people think the housing industry is ready for these type of programs again since the economy is improving and it will help the economy keep growing..
Michael was born and raised in Brooklyn NY. He graduated from Brooklyn College with a degree in Mathematics. His first job out of college was as an engineer tracking satellites. His last career before....