First-time, low-income and returning buyers are all eligible for the reduced rate.
Mortgage lenders Fannie Mae and Freddie Mac unveiled the details of their new low down-payment programs. They will begin accepting down payments of as low as 3 percent on fixed-rate mortgages. These loans are restricted to first-time buyers; low-income buyers; and buyers who have not owned another home within the last few years. Borrowers may be required to buy mortgage insurance and participate in credit counseling sessions, which have been proven to improve repayment rates.