Fannie Approves 3% Down Payments

Fannie Mae and Freddie Mac on Monday announced details of a controversial plan to allow some first-time homeowners to obtain a mortgage while putting down just 3% of the price of the home.

The shift back toward low down payments has drawn intense criticism from an array of legislators and lending and housing experts who say the plan revives the same lax lending practices that led to the 2008 financial crisis.

In a statement, Fannie Mae said the loans that allow for 3% down payments will be held to the same eligibility requirements as other Fannie loans, including underwriting, income documentation and risk management standards.

http://www.foxbusiness.com/eco...ves-3-down-payments/

I would worry that in a dozen or more years we would relive the 2008 meltdown, but we are more likely to redo the 2000 tech bust within a few years first.