Low Down Payment Option: 100% Yours with as Little as 3% Down

Posted On February 19, 2018

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Saving for a down payment is one of the most commonly reported obstacles to homeownership and continues to slow down the home buying process for creditworthy borrowers.  As rents and home prices continue to rise, almost every demographic, especially first-time home buyers, are experiencing difficulties in saving for a down payment. 

To address this problem and facilitate homeownership, Fannie Mae is testing a new low down payment option across three major markets.  Qualifying home buyers in St. Louis, MO, Philadelphia, PA, and Chicago, IL will have the option to purchase a home with 3% down.* 

Programs like HomeFundItTM make it even easier to reach the 3% down payment.  Through HomeFundIt, qualifying home buyers have the opportunity to crowdfund their down payment through contributions from family and friends.  

With the low down payment option and HomeFundIt, more creditworthy home buyers have a chance to enter the market and make the dream of homeownership a reality.  Where does the home buying journey begin?

Steps to Smart Homeownership

  1. Set Your Budget – Before you start shopping, consider how much you can afford. In addition to the monthly mortgage payments there will be the cost of homeowners’ insurance, maintenance, homeowners’ association fees, and more.
  2. Check Your Credit Report – Most real estate professionals recommend you start credit repair at least six months to a year before shopping for a home. This will give you a chance to improve your credit score.
  3. Get Prequalified and Find Out Down Payment Options – Talk to your local lender about your down payment options. You can also visit to do some research.
  4. Shop for a Home – Decide where you want to buy and what features are at the top of your list. Working with a real estate agent can help you narrow your search.
  5. Apply for a Loan – Typically, you’ll need to apply for a loan within a few days of acceptance of your offer. Your lender will help you with this.
  6. Close Your Loan – Welcome home!

With the low down payment option, owning a home is more achievable than ever before.  In addition to only requiring 3% down, gifts, grants, or funds from down payment assistance programs are all able to be used toward the down payment and closing costs.  With HomeFundIt and the low down payment option, a prospective home buyer could crowdfund the entire down payment through the platform. 

For more information about the low down payment option visit and to learn more about HomeFundIt visit


*Payment example: if you choose a $200,000 loan at a rate of 4.125% (4.324% APR), with a loan-to-value (LTV) of 97%. You would make 360 monthly payments of $969.30. Payment stated does not include taxes and insurance, which will result in a higher payment.