Fannie Mae And Freddie Mac Formally Have Announced Their 3

Dated: 12/16/2014

Views: 1133

Fannie Mae and Freddie Mac formally have announced their 3% down options on home purchases. Fannie Mae’s plan will be effective December 13, 2014 while the Freddie Mac plan will be available March 23, 2015. 
“The new lending guidelines released today by Fannie Mae and Freddie Mac will enable creditworthy borrowers who can afford a mortgage, but lack the resources to pay a substantial down payment plus closing costs, to get a mortgage with 3% down. These underwriting guidelines provide a responsible approach to improving access to credit while ensuring safe and sound lending practices.”
This is great news to millions of purchasers that have been denied the opportunity to own their own home because of the almost impossible burden of saving for a 20% down payment.

Will these programs create future challenges?

Certain pundits fear that low down payment programs will create a wave of foreclosures down the road. Mr. Watt also addressed this concern:
“To mitigate risk, Fannie Mae and Freddie Mac will use their automated underwriting systems, which include compensating factors to evaluate a borrower’s creditworthiness. In addition, the new offerings will also include home ownership counseling, which improves borrower performance. FHFA will monitor the ongoing performance of these loans.”

Paul Snyder III

I am a specialist in the management and sale of bank owned AND investment properties throughout SE and Central Pennsylvania. Our team of (14) real estate agents and (3) support staff are here to e....

Want to Advertise on this Site?

Latest Blog Posts

6 Must Do Outdoor Spring Home Maintenance Tasks

 John Riha and Stacy Gilliam Preventive maintenance is crucial to the value of your home. Keep your place in tiptop shape with regular check-ups to save you the headache and cost

Read More

Autumn Maintenance Tips

Use these must-do fall maintenance tips to keep your house in shape and help keep you warm this winter. Regularly clean gutters and downspouts. Make sure all drainage areas are

Read More

Clean House Cut Clutter Get Organized At Home

By Cynthia Ewer, Author ofCut the Clutter: A Simple Organization Plan for a Clean and Tidy HomeIt's Autumn. Pumpkins glow in golden fields. Shorter days, crisp mornings signal winter's approach

Read More

12 Easy Steps To Prepare Your Home For Fall

BY SEE JANE DRILL ON 29 SEP 2017Get your home ready for cooler weather while it's still nice outside.The days are getting shorter, and the nights are getting cooler. The kids are

Read More