More Americans to buy homes with 3
percent down
Fannie Mae and FREDDie MAC
has stated that some home buyers will be able to purchase a home with
only 3% down. The current miniumm is 5%
but 3.5% down if you are utilizing an FHA loan.
The companies announced last Monday the new guideline was
designed to assist low income and first time home buyers.
The guidelines are designed to prevent the foreclosure
fiasco we had in 2007-2009. The borrowers will go thru an underwriting process and
must have enough income to repay loans.
Mel Watt, director of the Federal Housing Finance Agency
stated the underwriting guidelines will provide a responsible approach to
improving access to credit while ensuring safe and sound lending
practices,"
. The FHFA oversees Fannie and Freddie, which have been
under government control since 2008 because of the housing bust
The new loans would be fixed-rate mortgages of up to 30 years for primary residences.
Fannie could begin underwriting the loans before the end of the year. It said the loans would be geared toward first-time buyers, require mortgage insurance payments because of the low down payment and mandate that buyers receive complete a financial counseling program.
Fannie and Freddie own or guarantee about half of all U.S. mortgages, worth about $5 trillion. Along with other federal agencies, they back roughly 90 percent of new mortgages.
The two companies don't directly make
loans to borrowers. They buy mortgages from lenders, package them as
securities, guarantee them against default and sell them to investors. That
helps make loans available.
For more infor log unto the FHFA website, Fannie
Mae and Freddie MAC.
Thank you,
Ainsley Daux
Florida Realty
(813)546-1954
Dover Florida Real Estate
