3% Down Payment, is there a Maximum Income to qualify?

[Javier Vía Reque]

BiggerPockets, this is the first post I make in the community. I am purchasing my first Property, it will be my Primary Home. I have been offered a 3% Down payment from a third party lending company. I also went to Chase and I was told there that because of my income being too high, I cannot qualify for a 3% down, only for 5% down. He said that even if I go with the third party lender, they wont be able to close my deal because of my high income. I have read online and I don't see that a 3% down program has an income limit, maybe is a limit that Chase has? Please help me with your expertise. Thank you in advance

[Chris Mason]

Originally posted by @Javier Vía Reque:

BiggerPockets, this is the first post I make in the community. I am purchasing my first Property, it will be my Primary Home. I have been offered a 3% Down payment from a third party lending company. I also went to Chase and I was told there that because of my income being too high, I cannot qualify for a 3% down, only for 5% down. He said that even if I go with the third party lender, they wont be able to close my deal because of my high income. I have read online and I don't see that a 3% down program has an income limit, maybe is a limit that Chase has? Please help me with your expertise. Thank you in advance

 Home Possible and HomeReady are income capped special programs.

There is vanilla 97% LTV Conventional, but many institutions have elected not to offer it and to push clients into higher profit FHA that will also have a lower rate, less restrictions (non-occ coborrower to make DTI work, f. ex) and be easier to "sell." @Russell BrazilFYI.

Here's some proof directly from the source: 

https://sf.freddiemac.com/content/_assets/resources/pdf/fact-sheet/homeone_mortgage_hpa.pdf

Note the option on the right hand column has "Max LTV = 97%" and "Income Limits = no limits," but requires that "at least one borrower must be a FTHB." (This is SFR only, sorry house hackers)

As always big banks or individual retail mortgage companies (loanDepot and Guaranteed Rate being examples of this latter case, these are not mortgage brokers no matter what your friend or a Realtor says) are the worst places to go if you want to see lots of different options. They will have a pared down list of the options that they elect to offer, under whatever terms/conditions/rates/fees they wish to offer it.