The 3 Percent Down Payment Mortgage is back.
Freddie Mac and Fannie Mae are now again offering 3% down Mortgage Loans.
This is possibly a good sign that our housing market is stabilizing and home owners are once again starting to see some appreciation on their investment.
The 3 percent was offered in the past, but when it became too risky for Freddie Mac and Fannie Mae to back these loans, they were no longer available and you needed a min. of 5 percent to get a Conventional loan.
I will add at this time that it is always better to be able to put down as much as possible because on the whole, the more you put down, the better your interest rate will be.
With most first time home buyers and their inability to save for a large down payment, the lower the required down will allow more young, first time home buyers, to be able to become home owners.
Yes they have always had the option...