Fannie Freddie Taking 3 Percent Down Again

Dated: 12/19/2014

Views: 233

New loans aimed at first-time homebuyers and owners with a sliver of equity.

Fannie Mae and Freddie Mac are ready to ramp up purchases and guarantees of mortgages in which borrowers put just 3 percent down, and first-time homebuyers will be able to apply for the loans as early as next week, Federal Housing Finance Agency Director Mel Watt announced today.


Borrowers will have to meet the mortgage giants’ usual underwriting, income documentation and risk management standards. As is the case for all loans in which buyers put less than 20 percent down, Fannie and Freddie will require that borrowers take out private mortgage insurance or other risk sharing.


Watt shared details about the new credit options to a roomful of bankers in Las Vegas, who were hopeful the options will encourage first-time buyers to join the housing market. The loans will also allow homeowners with a sliver of equity who are not eligible for the Home Affordable Refinance Program (HARP) to refinance, although they’ll have little or no ability to take cash out of their homes in the process.


The new initiative — which builds on a program Fannie Mae offered through state housing finance agencies — will include homeownership counseling, and FHFA will monitor loan performance on an ongoing basis, Watt said in a statement.


Fannie Mae said borrowers can start paperwork as early as Dec. 13. Freddie Mac’s new Home Possible Advantage program will become available for mortgages with settlement dates on or after March 23.


Blog author image

Boots Levinson

We are so much more than a full service real estate firm; we're a group of talented people with a passion for finding the best way of living. People who make every effort to help you live who you are.....

Latest Blog Posts

Happy Holidays

From our team to:)

Read More

Dec 29 2017 43733 1

Happy Holidays & New Year! Traditionally, a  part of the end of year is to reflect on your past year , make new goals & resolutions. Now is a perfect time to reflect on your living

Read More

Bitcoin Price Drop 40 Percent AND 5 Things You Must Know About Investment In Bitcoin

Christmas is almost here and among being busy with shopping, holiday arrangements, work and life in general, there is one hot topic that is on the minds of many: The Bitcoin. A 40% price fall from

Read More

Philadelphia Magical Holiday Traditions You Will Want To Make Your Own

From classic light shows to timeless theatrical productions, holiday traditions abound in Philadelphia year after year.Look no further than the Macy’s Christmas Light Show, which has dazzled

Read More