"In an effort to open up lending to more low-income and first time home buyers, Fannie Mae and Freddie Mac announced Monday that they will start backing mortgages with down payments of as little as 3% of the home's price."(Source CNNMoney)
According to CNN Money, Fannie and Freddie already back mortgages with as low as 5% down and the Federal Housing Administration insures 3.5% loans. These lower down payment programs should expand access to credit for first time homebuyers who are typically younger buyers who have not have had enough time to save a large amount of money.
Remember that your financial picture is unique and it's imperative that you speak with your trusted mortgage professional about your options.
Read the entire article from CNN Money Here »
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