Absolute Realty Group, LLC

195 Wekiva Springs Rd., #102
Longwood, FL 32779
Phone: (407) 673-1400
Fax : (407) 673-1401

What is Fannie Mae’s low-down program?


Fannie Mae is expanding the availability of low-down-payment loans in an effort to help more people nationwide qualify for a mortgage.

Two new programs will help potential buyers overcome two of the most common obstacles to home ownership, low savings and a modest income.

To address many first-time buyers’ struggles to save the down payment, Fannie Mae developed Fannie 97. The program provides 97 percent financing on a fixed-rate mortgage with either a 25- or 30-year loan term through Fannie Mae’s Community Home Buyers Program.

Fannie Mae’s new Start-Up Mortgage will assist buyers with a 5 percent down payment who are at any income level. Applicants do not need as much income to qualify and less cash for closing than with traditional mortgages. Borrowers will receive a 30-year, fixed-rate mortgage with a first-year monthly payment that is lower than the standard fixed-rate loan.

Freddie Mac, Fannie Mae’s counterpart, also offers low-down-payment loan programs.

Posted in: What You Can Afford