For those home buyers who wish to take advantage of the 3% downpayment plan with FHA insurance, do it before November 16, 2013.

Fannie Mae has announced that their guidelines are changing pursuant to requirements for “Qualified Mortgages.” What does that mean for the average homebuyer? While there are many changes within these new requirements some of the most important adjustments include the end of Fannie Mae’s 40-year amortization, interest only and three percent down payment programs. In addition, the requirements for qualification for adjustable rate mortgages have been tightened up as well. The elimination of the three percent down payment option removes an important alternative for those who have limited resources for a down payment and do not want to pay the increased mortgage insurance required of a Federal Housing Administration (FHA) mortgage. These new requirements are to go into effect on November 16.