The two government sponsored
enterprises (GSEs) announced details today of their respective new low
downpayment conventional mortgage loans.
Each will permit loans with as high as a 97 percent loan to value ratio with
certain compensating factors.
Both Fannie Mae and Freddie Mac’s loans must be secured by a single
family owner occupied property. Only
fixed-rate loans are eligible and manufactured housing is not acceptable
collateral. Tt least one borrower must
be a first time homebuyer and median income eligibility levels apply. The GSEs are also requiring a form of
homeowner education, the type and duration of which varies between them.