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Fannie Mae Announces 3% Down Payment Option for Qualified First-Time Homebuyers

April 23rd, 2015 8:40 AM by Jackie A. Graves, President

Fannie Mae recently announced that it will allow down payments as low as 3% for qualified first-time homebuyers. This presents an opportunity for homebuyers who may not have the resources to make a large down payment. Homebuyers should work with their lender to find out if they meet eligibility requirements for the low down payment option, including underwriting, income documentation and other standards.

To be eligible for this 3% down payment option, at least one buyer must be a first-time homebuyer (in this case, "first-time homebuyer" means that at least one buyer hasn't owned any residential property in the past three years). Homebuyers can finance their home purchase under Fannie Mae's standard conventional mortgage or its MyCommunityMortgage® product which offers enhanced eligibility terms and includes homebuyer education.

In addition, current homeowners whose mortgages are owned by Fannie Mae may be able to refinance their loan up to 97 percent of the property value (known as 97% loan-to-value or LTV) with a limited cash-out option.

Not every homeowner will qualify for a low down payment option, and there are many things to consider when buying and financing a home. This site can help you understand your options. Review our Buy section which includes steps to help you Get Started. Then contact your lender to find out what financing options work for you.

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Posted by Jackie A. Graves, President on April 23rd, 2015 8:40 AM


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