Chase Launches its Own 3% Down Payment Mortgage Program

Rolls out first-time homebuyer program with Fannie Mae backing

Chase’s 3% down mortgage program called the “Standard Agency 97%” program is designed for first-time homebuyers who have limited cash for a down payment and closing costs. The new program is done with Fannie Mae backing.

For loans with loan-to-value ratio greater than 95% to 97%, the remainder of the down payment and closing costs can come in the form of a gift, Chase confirmed.

Additionally, consumers who take part in the program can actually put 0% down on any loan with a LTV lower than 95%.

Now, the lending standards are more stringent than the similar programs of Bank of America and Wells Fargo. To take part in the Chase program, customers must have a FICO score of 680 or higher and at least one customer must be a first-time homebuyer.

“We are constantly innovating by exploring new products and enhancing existing ones to meet the needs of our customers across the credit spectrum,” Steve Hemperly, Chase’s head of mortgage originations, said in a statement.

The loan features no upfront mortgage insurance premium and features no income limits.

“We have several lower down payment options and there is interest and a need for these products,” Fannie Mae said in a statement. “We believe these loans can be done safely and are pleased that Chase will now offer our standard 97% LTV option.”

The “Standard Agency 97%” program isn’t Chase’s only low down payment program.

Chase also offers a loan program it calls “DreaMaker Mortgage, which requires only 5% for a down payment (3% of which can come from the borrower themselves), and offers flexible funding options for closing costs, reduced mortgage insurance requirements and lower monthly payments compared to other options.

That program requires a lower FICO score than the “Standard Agency 97%” and also has an income limit requirement.

For now, the “Standard Agency 97%” is available for buyers who qualify, and Chase plans to make “further enhancements” to the program in the coming months.