Yes, that is right.  Some investors are allowing 97 percent financing again for the purpose of purchasing a home and for rate and term refinances.

For the purpose of purchasing, the Seller can once again contribute the 3% down-payment, and in some cases can contribute up to 6% of the purchase price.

This program can also be used for 2-unit Owner occupied properties.

This is welcome news for borrowers who do not have cash reserves or cash to put down toward the purchase price.

This will fill a void that has existent, since the program went away and FHA requires 3.5% of borrower's own funds be tied to the mortgage transaction.

Again, please keep in mind that not all investors are carrying this product.