Earlier this week, Fannie Mae and Freddie Mac announced plans to bring back the 3 percent down payment mortgage. This, hopefully, will benefit first-time buyers, young homebuyers and those with lower incomes.

How to qualify varies according to program, so let’s break it down.

Fannie Mae

With Fannie Mae’s 3 percent down-payment program you will be required to meet standard requirements, such as income documentation and underwriting. Unlike Freddie Mac’s program, Fannie’s is for first-time buyers only, but only one co-borrower has to be a first-timer. These loans also come with a private mortgage insurance requirement.

Freddie Mac

Freddie Mac calls its 3 percent down payment program “Home Possible Advantage.” It’s aimed at low-to-moderate income applicants who must enroll in an education program prior to approval. The program begins on March 23, 2015.

Keep in mind that you’ll still need to qualify for both programs through some very stringent guidelines. A higher loan-to-value ratio dictates stricter guidelines. If you have a high credit score, however, these programs may be the ideal choice for you.

Our lending partners can help you determine if you qualify – and there’s never any obligation to use them to obtain a loan. Call us for more information.

“Fannie Mae Headquarters” by AgnosticPreachersKid – Own work. Licensed under Creative Commons Attribution-Share Alike 3.0 via Wikimedia Commons