Bloomberg News reports that per December 13, 2014, Fannie Mae and Freddie Mac have set terms for letting borrowers put down as little as 3 percent of a home's cost to get mortgages, for first-time home buyers. They will also permit refinancing borrowers to reduce equity to 3 percent to cover closing costs. This is also a part of a broader effort to spur lending to minorities, young adults and first-time buyers.
While this program has earned some criticism, especially in light of the not so distant housing crash, officials of Fannie Mae and Freddie Mac said rules banning risky loan features will ensure that the new low-down payment mortgages are safe. Only borrowers buying or refinancing a single-family primary residence will be eligible.
John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida
Cell: 904-415-0171
Email: holbrook66@msn.com
www.johneholbrook.com
Thursday, January 22, 2015
Fannie Mae to offer 3% Down
Bloomberg News reports that per December 13, 2014, Fannie Mae and Freddie Mac have set terms for letting borrowers put down as little as 3 percent of a home's cost to get mortgages, for first-time home buyers. They will also permit refinancing borrowers to reduce equity to 3 percent to cover closing costs. This is also a part of a broader effort to spur lending to minorities, young adults and first-time buyers.
While this program has earned some criticism, especially in light of the not so distant housing crash, officials of Fannie Mae and Freddie Mac said rules banning risky loan features will ensure that the new low-down payment mortgages are safe. Only borrowers buying or refinancing a single-family primary residence will be eligible.
John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida
Cell: 904-415-0171
Email: holbrook66@msn.com
www.johneholbrook.com
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