Fannie and Freddie Begin Offering Riskier Loans: 3% Down

The Washington Free Beacon reports:

Housing giants Fannie Mae and Freddie Mac on Monday released the final guidelines for low down payment mortgage loans, reviving a practice that critics say could eventually lead to defaults and another financial crisis.

Fannie and Freddie announced that eligible first-time homebuyers could now obtain mortgage loans with down payments as low as 3 percent. Both entities still purchase a majority of loans in the housing market and remain under government conservatorship after the 2008 crisis.

Because in a free market in housing : no one is giving you a housing loan with 3% down. No one.