Fannie Mae-No Politics (FNMA)

[Mathan22]

Just to clarify:

Fannie Mae does back loans with 3%, 5% or 10% down and anything in between. There has to be mortgage insurance and there are seal rate guidelines for all down payment options. They recently lowered the down payment from 5% to 3% with MI, but the buyer has to be a first time buyer and has to complete a homebuyer counseling class. Fannie Mae has more stringent debt to income and fico requirements than FHA (HUD) mortgages. Fannie typically will not accept loans over 45% total debt ratio where FHA can accept loans with a 47% housing and 56% total debt ratio. Fannie typically likes to see 680 FICO scores for lower down payment tiers and FHA will allow for 580.