09 Jan Fannie Mae and Freddie Mac Swim Against the Tide with 3 Percent-Down Loans
Recently, Fannie Mae and Freddie Mac announced plans to begin backing home loans with down payments as low as thee percent. This move came just days after the mortgage giants implemented less rigid lending standards in order to give Main Street citizens with less-than-perfect credit a better chance at homeownership. According to The Association of Mortgage Professionals (NAMB), it seems the lending industry is opening its arms to the millennial generation, too many of whom have yet to own their first home.
The new program – Freddie Mac’s Home Possible Advantage and Fannie Mae’s as yet unnamed – are tailored to first-time homebuyers and low – and moderate-income individuals who finance a fixed-rate mortgage. In these cases, they may be approved for a loan without the capital required to make the traditional five percent down payment. In exchange for the lower down payment, the applicant must be able to demonstrate their ability to repay their loan, secure mortgage insurance, and attend pre-purchase counseling.
Please contact one of my preferred lendors below for additional information.
To read this full article click on the link below.
Fannie Mae and Freddie Mac Swim Against the Tide with 3 Percent-Down Loans