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Fannie Mae 3% Down - The Basics

Updated: Nov 21, 2019

Fannie Mae’s 3% down programs - Conventional and HomeReady - provide options for new homebuyers having difficulty producing a larger down payment. Each of these fixed-rate, 30-year mortgages are secured by single-unit principal residences - which include qualifying condos, co-ops, PUDs, and MH Advantage homes. Although it's not the most common, some qualified borrowers with an existing Fannie Mae loan may wish to apply for a Limited Cash Out Refinance (LCOR).



Conventional 97

Qualifying for the loan is a straight-forward process for borrowers who meet the terms. Fixed rate loans under the conventional limit ($484,350) for eligible single-unit primary residence usually close in about a month for first-time homebuyers with a credit score above 680.


Note: Borrowers can qualify with 620 credit score but credit scores lower than 680 may not receive all features of the loan



Home Ready

Fannie Mae’s HomeReady 3% down program is intended to help households that earn less than 80% of area median income by providing a few additional benefits, given additional requirements are met.




Douglas Kennell

NMLS #364758

Sovereign Mortgage Investments, Inc.

NMLS #222681

Sources:

https://www.fanniemae.com/content/fact_sheet/97-ltv-options.pdf

https://www.fanniemae.com/content/faq/97-ltv-options-faqs.pdf


Disclaimer:

Rates, regulations, and loan conditions can and do change. The information presented in this article was accurate, to the writer’s knowledge, as of 8/15/2019. Consult your Sovereign Mortgage Investments Inc, adviser to see if rates, regulations, and loan conditions have changed.

Douglas Kennell

NMLS #364758

Sovereign Mortgage Investments, Inc.

NMLS #222681

doug@financebydoug.com

(239) 542-6224

Cape Coral, FL 33904

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