Fannie Mae 3% Down Payment Is Back!

According to consumer research conducted by Fannie Mae, the primary barrier to home ownership for first-time home buyers is saving money for down payments and closing costs. In support of ongoing efforts to expand access to credit and support sustainable home ownership, Fannie Mae is announcing an increase in the maximum LTV, CLTV, and HCLTV ratios for certain principal residence transactions. Fannie Mae will offer 97% LTV financing to help home buyers who would otherwise qualify for a mortgage but may not have the resources for a larger down payment and to help borrowers with an existing Fannie Mae mortgage who may not be eligible to refinance using Refi Plus™ or DU Refi Plus™.

Fannie Mae is providing multiple options to help lenders serve creditworthy borrowers and expand business opportunities. Using the power of Fannie Mae’s proven risk management tool, Desktop Underwriter® (DU®), lenders will be able to underwrite these transactions safely and responsibly and finance mortgages for sustainable home ownership.