The Federal Home Loan Mortgage Co. (Freddie Mac) last week announced it will no longer accept borrower down payments of less than 3 percent for mortgages that close on and after Nov. 1, 2017 – with a few exceptions.

The GSE said in a statement that it will require a minimum down payment 3 percent of the purchase price must come from borrower funds. the change eliminates the 1 percent down loans that match funds from the lender or seller to get to a 3 percent minimum, which have been increasingly popular since 2014.

“We are changing our requirements for Home Possible Mortgages, including Home Possible Advantage Mortgages,” according to the statement. “We are revising our requirements to state that gifts or grants from the seller as the originating lender will be permitted only after a contribution of at least 3 percent of value (i.e., the lesser of the appraised value or the purchase price) is made from borrower personal funds and/or other eligible sources of funds as described in Guide Section 4501.10(c). Gifts or grants from the seller must not be funded through the mortgage transaction, including differential pricing in rate, discount points or fees for individual loans or across the Home Possible offering.”