The Federal Housing Finance Agency (FHFA) announced this week that Fannie Mae and Freddie Mac have issued new underwriting guidelines allowing eligible borrowers to acquire mortgages with 3% down payments. FHFA Director, Melvin L. Watt, stated, “The new lending guidelines released today by Fannie Mae and Freddie Mac will enable creditworthy borrowers who can afford a mortgage, but lack the resources to pay a substantial down payment plus closing costs, to get a mortgage with 3 percent down. These underwriting guidelines provide a responsible approach to improving access to credit while ensuring safe and sound lending practices.”
According to HousingWire, Fannie Mae’s desktop underwriting tool for their 3% down payment My Community Mortgage product will roll out on the weekend of December 13th. Freddie Mac’s implementation of their Home Possible Advantage℠ product that offers a 3% down payment option is anticipated to be completed by March 23rd. To read the full news article by HousingWire, visit http://bit.ly/1waF7TR.