Fannie Mae and Freddie Mac have recently reintroduced the 3% down payment conventional programs. Many benefits are available for home buyers with these programs including reduced rates, reduced mortgage insurance and, of course, a lower down payment!
Some differences between Fannie Mae and Freddie Mac are as follows:
Fannie Mae 3% Down Payment:
- Purchase or rate/term refinancing only
- Homebuyer education is required
- At least one buyer must be a first time homebuyer
- Single family, primary residence only
- Down payment assistance loans allowed (must be a Community Second)
Freddie Mac Home Possible 3% Down Payment:
- 680 minimum credit score
- Homebuyer education is required
- None of the buyers are required to be first time buyers