Fannie Mae and Freddie Mac unveil mortgages with 3% down payment

  Photo by Andrew Harrer

Photo by Andrew Harrer

Fannie Mae and Freddie Mac announced Monday that they will start backing mortgages with down payments of as little as 3% of the home's price. Although borrowers will still need to meet strict criteria, this effort is expected to open up lending to more low-income and first time home buyers.

The new loans will only be available to those who buy private mortgage insurance, have a credit score of at least 620 and offer complete documentation of their income, assets and job status. The agencies will also require borrowers to receive home ownership counseling.

Fannie Mae will start backing the loans as soon as December 13, while Freddie Mac will start offering them March 23 of next year. Contact us today for more info on how to make your home purchase with only 3% down!