Sometimes you see a listing that says, Fannie Mae property, only 3% down. Is that really true? Well, I called a whole bunch of banks, wanting that deal, and found out a few things:
1) Most banks don't do Fannie May
2) A lot of the ones that do want 20% down, they say it's not worth their time
3) A lot of banks that do Fannie May will have a minimum loan amount, such as $50,000 or $75,000, so if you're looking at a cheap Fannie Mae condo listed at $40,000 no one would bother lending on it
4) I was recently referred to a Fannie Mae lender, and the banker I talked to was such a stickler for rules and so dense, she disqualified me for a $55,000 townhouse, where as I am pre-qualified by a few banks to buy something up to $80,000 FHA. She thought a payment of $550 a month was too high for my income, where as Bank of America or Banner bank, for example, would easily let me go up to a $650/mo payment.
So, to summarize in plain English: Fannie Mae 3% down is a mystical pot at the end of the rainbow that you can chase forever and never get.
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