If you have been wanting to purchase a new home but have counted yourself out of the equation due to the fact that you cannot come up with the down payments needed, don’t count yourself out just yet!  3% down payments are 3 percentstill out there for the taking, so get out there and start looking for your new home today! These low down payments are being offered by Fannie Mae and Freddie Mac.  Fannie began backing the loans on December 13, while Freddie will start offering them March 23, 2015.

The 3% down payment loans are only going to be offered to you if you have a credit score of at least 620.  Also you may want to know that if you want to take part in the great down payments as low as 3% you are going to need to buy private mortgage insurance. 

  • If you are expecting to get a 3% down payment loan without home ownership counseling then you are mistaken.  I still think it is worth it no matter how many hoops you may have to jump through to take advantage of the low down payment.  Some folks may find that without the low down payment plan they are just not able to purchase a home, so the hoops are well worth it in the end. 
  • You will have to offer a total and complete documentation of your job status, income and all of your assets in order to possibly qualify for one of the 3% down payment plans. 
  • Those who want to refinance or who are first time home buyers will be the candidates that qualify for this program. 

If you think that you may qualify for these new low down payment plans from Fannie Mae or Freddie Mac you should give your Realtor a call as soon as possible to get the ball rolling in your favor.  These kinds of deals don’t come around all the time so be sure to take advantage of them.  You will save thousands of dollars in the long run once making your home purchase if you are just willing to take a little extra time gathering all of your documents that will be needed to qualify. 

Information provided by Chester County PA Realtor Scott Darling.