3% down vs FHA 3.5% down?

[Kevin Mejia]

I’ve been reading about new 3% down payment for first time homebuyers . Does anyone have any insight on it ? Is it better than the standard FHA 3.5%? Maybe some key differences? Would it be a better low monthly mortgage ?

[Upen Patel]

Hey! @Kevin Mejia 3% down Fannie/Freddie loans have always been around. Both have PMI. Fannie/Freddie PMI will drop of when you hit 80% LTV. FHA 3.5% works better if your credit is low and/or you need to push the DTI.