Fannie and Freddie
Fannie Mae and Freddie Mac guarantee more than half the country’s mortgages. At the end of 2014, the two government-backed companies announced plans to slash minimum down payments from 5% to 3%.
The new program from Fannie Mae went into effect in December, and the one from Freddie Mac will begin in March. Both are only for first-time homebuyers, and the Freddie Mac program is restricted to low-income borrowers.
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“Down payment has become the single largest barrier to home ownership,” said Stevens. “Quite frankly, it’s going to be a lot safer and sounder this time than it was in the past.”
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