Fannie, Freddie To Back 3% Downpayment Mortgages

Washington, DC, Dec. 9, 2014 -- Fannie Mae and Freddie Mac said Monday that they will start backing fixed-rate mortgages with minimum down payments of 3% of the home's price.

The new loans, for first-time buyers, will only be available to those who buy private mortgage insurance, have a credit score of at least 620 and offer complete documentation of their income, assets and job status.

Also, buyers will be required to receive home ownership counseling.

Fannie will start backing the loans as soon as December 13, while Freddie will start offering them March 23.