Today, Freddie Mac is scheduled to start buying mortgages with down payments of only three percent – the first time down payments have been this low on Freddie Mac loans in nearly five years. The program is called Freddie Mac Home Possible AdvantageSM.
In a recent Executive Perspectives, Dave Lowman EVP, Single-Family Business Freddie Mac, explained the potential impact this program will have on the housing market:
“There's a new reason Realtors and lenders may expect more qualified borrowers at the closing table during this spring's home buying season. In addition to low mortgage rates and rising job growth, the down payment hurdle is starting to shrink for creditworthy borrowers, including first-time homebuyers.”
And the mortgage industry agrees with Mr. Lowman. In a recent survey of mortgage originators by the National Association of Realtors (NAR), it was revealed that most loan officers believe the move to a lower down payment will increase access to mortgage credit. Here are that survey’s findings:
Many potential buyers are “ready and willing” to buy a home but have been afraid they may not be “able” because of a lack of adequate savings for a down payment. Check with a local real estate or mortgage professional to understand what the new rules may mean to you.
Author:Sherry Cabrera Phone: 214-454-6969 Dated: March 24th 2015 Views: 755 About Sherry: Sherry was raised in Mississippi and moved to Dallas 16 years ago with her daughter. Prior to movin...
Recently there has been a lot of talk about home prices and if they ar
"When my Wife and I bought our House the market was crazy. Inventory was very limited and quick action was necessary. During this tough time we needed a smart, tenacious, agent. We found these qualities in Kellye Demski. Kellye always brought us the latest listings and gave us sound advice on when to make an offer. Kellye showed great patience with us as we looked at House after House. We are very happy with our
purchase and Kellye made the buying process as painless as possible. We would definitely use Kellye again and refer her to Family and Friends.