Fannie Mae To Cut Down Payment Requirements in Regions With Falling Home Values

Washington, D.C.–Fannie Mae will eliminate a policy that requires homeowners to provide a higher down payment in areas where home values are falling, The Wall Street Journal reported Friday.The National Association of Realtors, National Association of Home Builders and organizations encouraging affordable housing for low-income residents have urged the Washington, D.C.-based agency to change its downpayment policy because they feel it’s cutting the number of buyers and hurting the housing market, according to the Journal.The current down payment policy will end June 1; a new policy “equalizing the down-payment requirements for borrowers in all parts of the country, regardless of local market conditions” will then go into effect, Fannie executive Marianne Sullivan said.Fannie-approved borrowers will be able to put down as little as 3 percent; buyers approved by other means will be allowed to put down as little as 5 percent.