Fannie Mae Brings Back The 3 Percent Down Payment Home Loan

Dated: 01/30/2015

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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..

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Michael Eisenberg

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....

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