Thursday, May 15, 2008

Fannie Mae scraps higher down payment requirements - May. 16, 2008

WASHINGTON (AP) -- Fannie Mae says it is doing away with higher down payment requirements for borrowers in distressed real estate markets.

The government-sponsored mortgage financier said Friday it will require down payments of between 3% and 5% for all loans that it guarantees.

That replaces a December policy that required a higher down payment if the loan was for a home in a market with declining real estate prices.

Washington-based Fannie (FNM, Fortune 500) says the move is part of its effort to help resuscitate the flagging mortgage market. See Also

Source: Home Mortgage Rates and Real Estate News

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