Unfortunately, Chris Hazlewood has mislead you.
Number one, he isn't a mortgage broker or a lender. If he were he would have a Nationwide Mortgage Licensing System (NMLS) number like I do. As you can see by clicking the following link, he does not: http://www.nmlsconsumeraccess.org/Home.aspx/SubSearch?search
By contrast, here are the search results for me in the NMLS: http://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVID
As you can see by clicking the link, I am in fact a lender & I work for Peoples Bank & Trust Co.
Number two, Fannie Mae stopped allowing 3% down back in November when DU Version 9.1 was released. Here are the guidelines : https://www.fanniemae.com/content/release_notes/du-do-releas
LTV/CLTV/HCLTV Ratio Cap Lowered to 95%
DU Version 9.1 will reflect lower maximum LTV/CLTV/HCLTV ratios for standard and MyCommunityMortgageÂ® (MCMÂ®) fixed-rate transactions secured by a 1-unit primary residence. Those transactions will be subject to a maximum LTV/CLTV/HCLTV ratio of 95% (instead of 97%). DU will continue to allow CLTV ratios of 105% when the subordinate financing is a Community SecondsÂ® mortgage.
So you'll need at least 3.5% down for FHA loan unless you're a Veteran or you buy in an area that's eligible for the no money down USDA mortgage which 06405 is not.
Please check out my recommendations here on Trulia from some of my past clients by clicking the following link.
Please feel free to contact me for more information or help.
Senior Mortgage Banker
Peoples Bank & Trust Co.
NMLS # 787231