Fannie Mae announced today that, beginning June 1st, it will ease its policy on down payment requirements in all markets. This supersedes a policy that it announced in December requiring larger down payments in declining areas.
The new national down payment requirements will be 3%, for loans approved through their automated computer system, and 5% for other loans on the purchase of single-family, primary residences.
In addition, Fannie Mae will still allow loans with Community Seconds® for up to 105% of a combined loan-to-value. Community Seconds are –typically government sponsored- loans to assist with down payments and closing costs. Other programs which allow down payment assistance in the form of grants or gifts will also continue to be supported.
So, if you’re a buyer who’s been sitting on the fence waiting for the right time to jump in to the market, you had better get your jumping shoes on!
Steve Brown
619-368-3765
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