3% Down Payment Available Again from Fannie Mae

by Dana Meadows, Movement Mortgage

 

Effective Monday, December 15th, Fannie Mae made purchasing a home with 3% down payment available once again.  There are some guidelines I wanted to make you aware of, as this program will not work for all borrowers.

 

  • 30 year fixed term only (no adjustable rate mortgages or Home Style Renovation mortgages allowed)
  • One unit primary residence only
  • At least one of the borrowers must be first time home buyers (if on title to a property within the last 3 years, a borrower is NOT a first time home buyer)
  • Minimum credit score is 640
  • 3% down payment may be a gift
  • Reserves may be required depending on credit risk of the loan (credit scores and debt to income ratios), but may be gifted from a blood relative

 

Freddie Mac has not announced their new guidelines, so 97% financing is only available through Fannie Mae, or for qualified borrowers through NC Housing with the NC Home Advantage program (with or without down payment assistance).

 

If you have any questions on this program, please do not hesitate to contact Dana Meadows at 704-763-9728.

 

**Information is believed to be accurate at the time of post but you should contact a mortgage professional with up-to-date laws & lending rules**

 

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