Fannie to change down payment policy: report : US Business

NEW YORK (Reuters) - Fannie Mae is expected to announce on Friday that it is getting rid of a policy that requires higher down payments on home mortgages in areas where home prices are dipping, the Wall Street Journal reported.

The current policy, due to end on June 1, limits loan amounts in areas with falling home prices, and includes most of the thickly populated parts of the country, the Journal said.

But under the new policy, which go into effect next month, Fannie will have the same maximum loan percentages across the United States for people purchasing single family homes they plan to occupy, the Journal said, citing people familiar with the plan.

The Journal added Fannie is expected to keep variable down-payment requirements on mortgages that are deemed riskier, like those used to buy investment or vacation homes.

Fannie Mae was not immediately available for comment.

(Reporting by Aarthi Sivaraman)

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