New 3% Down-Payment Loan Program

Late in 2015 FNMA rolled out their new Conventional loan program which allows as little as 3% down-payment for qualified borrowers.  Call Marlin for details but following are some basics:

  • Owner Occupied residences only – no second homes or investment
  • Cannot already own another residence
  • Some areas have household income limits (around $60k) but no income limit in other areas – based on census tract data
    • Go here:
  • Requires only 3% down-payment.  There is no up-front funding fee like USDA and FHA
  • There is monthly mortgage insurance which drops off at 78-80% LTV.
  • Gifts or grants can be source of down-payment
  • Non-borrower household income can be used (example: use income of spouse who cannot be on loan because he has bad credit)
  • Must do homeownership education online – $75