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Fannie Mae and Freddie Mac 3% Down Payment

Fannie Mae and Freddie Mac have recently reintroduced the 3% down payment conventional programs. Many benefits are available for home buyers with these programs including reduced rates, reduced mortgage insurance and, of course, a lower down payment!

Some differences between Fannie Mae and Freddie Mac are as follows:

Fannie Mae 3% Down Payment:

  • Purchase or rate/term refinancing only
  • Homebuyer education is required
  • At least one buyer must be a first time homebuyer
  • Single family, primary residence only
  • Down payment assistance loans allowed (must be a Community Second)

Freddie Mac Home Possible 3% Down Payment:

  • 680 minimum credit score
  • Homebuyer education is required
  • None of the buyers are required to be first time buyers

Watch our informative overview video here: