Lost in much of the anticipation – and subsequent delivery – of the first rate increase by the Federal Reserve in nearly a decade, Fannie Mae has introduced it’s new HomeReady Program aimed at low-to-moderate income home buyers that requires as little as 3.0 percent down payment on base conforming loan amounts. At the same time Fannie Mae announced a change in its guidelines on high balance loans that will lower the minimum down payment from 10 percent to 5 percent that should benefit potential buyers in higher cost areas.

As the down payment is often seen the prime barrier to home ownership, potential buyers now have a wider choice of reasonable down payments in expensive areas: 0 percent for VA loans, 3.5 percent for FHA loans and now 5. percent for Fannie Mae loans.