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Low Down Payment: Flexible 97 ® & Flexible 100 ™ Mortgages

If you have limited funds to use toward a down payment and/or closing costs, these low down payment mortgages may be for you.

Fannie Mae's Flexible financing solutions enable lenders to provide you with options for making a low down payment, and allow you to use flexible sources for funding your down payment and closing costs.

Both the Flexible 97 and Flexible 100 Mortgages are available as 15- or 30-year fixed-rate loans, or as 5/1, 7/1, and 10/1 adjustable-rate mortgage (ARM) loans.

Loan Features

• No down payment (Flexible 100) or 3 percent down payment (Flexible 97).
• You must make a minimum contribution of at least $500 of your own funds (Flexible 100 only), or 3 percent from flexible sources of funds (Flexible 100 and Flexible 97) toward down payment and/or closing costs. In addition to your own funds, allowable flexible sources include gifts, grants, or unsecured loans from relatives, employers, public agencies or nonprofit organizations, or secured borrowed funds.
• Home-buyer counseling is not required.

Considerations

• Minimize your own outlay of funds, since you can make a minimum contribution of $500 of your own funds or use flexible sources for the minimum 3 percent borrower contribution.
• You can finance up to 100 percent of the purchase price of your home.
• There are no income restrictions.

Example
Here is a hypothetical example:

• $100,000 purchase price
• 3% down payment
• 1% origination fee and 15 days prepaid interest
• 30-year fixed-rate
• 8% interest rate
• 8.6008% APR (which includes estimated mortgage insurance)
• $711.76 monthly principal and interest payment plus $50.93 for estimated mortgage insurance

The interest rate and APR shown are examples only and are not intended to represent actually available terms.

For informational and educational purposes only.