The govt is trying to help home ownership rates climb since it the bank’s requirements have been so tight.
Mortgage giants Fannie Mae and Freddie Mac announced new loans with down payments as low as 3 percent under a new program largely aimed at first-time homebuyers.
The loan must be a borrower’s primary residence, so no investors, At Fannie Mae, at least one of the borrowers on the loan must be a first-time homebuyer, defined as not having owned a home in the past three years. Freddie Mac is allowing the low down payment loan for any borrower who meets its underwriting standards.
Of course its a killer qualification process including your first born child but if you can do it, it’s a good deal. There are also local and state programs that have downpayments assistance so it could be a no down loan. Lots of hoops to jump through but its worth knowing about these as an investor so you can sell your house quicker and take on more applicants.