Breaking News: Fannie Mae and Freddie Mac Drop Some Down Payment Requirements to 3%

by Brandon

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Fannie Mae Freddie mac 3 percent news

On Monday December 8th 2014, Fannie Mae and Freddie Mac, the nations leading mortgage buyers, issued statements that announced they will allow loans for primary residences as low as 3% down. This move was done in an effort to loosen credit and get more people into homes, though certain criteria and rules are in place to prevent another 2007.

But will it be enough?

Related: Should We Act on What We Hear in The News About Real Estate?

Fannie and Freddie 3% Details

The new 97% LTV loans will allow homeowners to purchase properties for just 3% down, a reduction from their previous requirements of 5%. Although this is only a small drop, it is the hope of these government-sponsored enterprises that by decreasing the loan amount required, more individuals will be able to purchase a home.

(click to continue reading on BiggerPockets)

About Brandon

has written 199 Awesome posts in this blog.

Brandon Turner (G+) is the BiggerPockets.com Senior Editor and Community Director and owner of RealEstateInYourTwenties.com. He is also an Active Real Estate Investor (Flips, Apartments, and Buy-and-Hold), Entrepreneur, World Traveler, Third-Person Speaker, and Husband. Come hang out with him on Twitter!

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