Update on recent changes to Fannie Mae guidelines, now allowing a down payment of just 3% for many borrowers. This is a significant reduction in the previous 5% minimum and even lower than the current FHA 3.5% minimum. The interest rates and monthly payments are also very attractive, even better than FHA. We can get the payment even lower by structuring the loan without a monthly mortgage insurance payment. Other key points include:
- Only 3% down payment
- Gifts allowed for down payment
- At least one borrower must be a first-time homebuyer. (Have not owned a home in 3 years)
- One-unit single family owner occupied homes only
- Homebuyer education and counseling class required for certain situations.