Freddie Mac And Fannie Mae Release New Mortgage Program
Most Americans dream of owning a home. A home means a place to build memories, forge friendships, and raise children for years to come. It provides a hearth around which activity can center, holidays can be celebrated, and important events commemorated. For many renters, though, the dream of owning a home has seemed impossible because of the financial burden of saving 10, or even 20, percent for a down payment.
To alleviate this burden, Fannie Mae and Freddie Mac have released mortgage options that require just 3 percent down. Fannie Mae’s plan became available December 13, 2014 and Freddie Mac’s plan will become available on March 23, 2015. These new plans will enable potential homebuyers who have good credit and sound savings to purchase a home without having to wait while they save for a large down payment.
Some have cautioned that these small down payments could lead to more foreclosures down the road. To avoid future challenges in the housing market, Fannie Mae and Freddie Mac are using the systems they already have in place to ensure only those with strong credit histories are able to take out these types of loans. Their automated underwriting systems will continue to be used, and they will offer homeownership counseling to borrowers to help them keep up to date on their payments. This type of counseling has been shown to help borrowers perform their best in regard to their loans.
Do these new programs make your dream of buying a home suddenly possible? Let us help you make it a reality! For expert guidance so you can get into the home of your dreams, contact The Barr Team. Located in Irvine, our team of expert agents is here to help you find your ideal Southern California home. Call us today!