New Low-Down-Payment Loans On The Way

Fannie Mae and Freddie Mac announced on December 8th that they would begin backing mortgages with down payments as low as 3%. The loans would be available to first-time buyers, buyers who haven't owned a home for a few years, and those that have lower incomes but good credit.

Since Fannie and Freddie are not direct lenders, mortgage companies are now working to develop product utilizing these new guarantees. More potential buyers who have been frozen out of home buying because they were hindered by accumulated wealth not challenged credit will now be able to participate in the American Dream.

In the meantime, there is a variety of loan product currently out there with down payment requirements as little as 5%. We advise potential buyers who have a credit score of 640 or above and have current employment history to consult with a reputable local lender to see if home ownership is in their grasp. A professional Realtor can make a recommendation.