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Homebuyers can soon get $1 million in mortgages with 3% down payments




To qualify for a $1 million home loan, Americans typically have to make a down payment of at least 20% of the home’s price. Starting next year, some buyers can put down as little as 3%.

The top for mortgages backed by Fannie Mae and Freddie Mac rises to $1,089,300 next year in a few high-priced markets, including Los Angeles and New York, up from $970,800, the Federal Housing Finance Agency, or FHFA, said Tuesday. The higher limit means borrowers can qualify for larger loans without having to take out jumbo loans, which are not federally backed and have stricter income, credit and down payment requirements.



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