Fannie Mae Scraps Higher Downpayment Requirements

On Friday, May 16th, Fannie Mae scrapped its increased minimum down-payment requirement for homes in declining markets. This replaces a December policy that required a higher minimum down-payment if the loan was for a home in a market with declining real estate prices (not necessarily distressed areas). The government-sponsored mortgage financier said it will continue to require minimum downpayments of between 3%-5% for all loans that it guarantees.