This special financing available on designated Fannie Mae REOs. These loans offers low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only). You may qualify even if your credit is less than perfect It is available to both owner occupiers and investors. The downpayment of at least 3 percent can come from your savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer. There are no appraisal fees and no mortgage insurance. The downside is that the interest rates tend to be higher and there may be additional fees if you elect the "no mortgage insurance" option.