Fannie Mae Down Payment
Basically, the borrower or a co-borrower must pay the down payment in a reasonable manner that conforms with Fannie Mae down payment guidelines.
Below, are some of Fannie Mae down payment guidelines:
Most commonly a minimum of 5% down payment is required from the buyer of an owner occupied property if the loan to value exceeds 80% of the purchase price. However, on an investment property, a minimum of 20% down payment if required from the borrowers' own funds.
Seller contributes are unacceptable forms of down payment on a mortgage loan. Furthermore, the down payment may not be from the proceeds of a personal loan, a gift that must be repaid, a cash advance, or money from an unverified source.
Gifts are acceptable if they come form a relative, church, or nonprofit organization and do not need to be repaid. A relative is any guardian, spouse, child or dependant, person related to the borrower through adoption, blood, or marriage, a fiancée or domestic partner. Gifts are not permissible for second home or investment properties.
When it comes to getting a mortgage
you have more options than you think