3% Down Payments Are Back

[Guest]

In an effort to open up lending to more low-income and first time home buyers, Fannie Mae and Freddie Mac announced Monday that they will start backing mortgages with down payments of as little as 3% of the home's price.

But borrowers will still need to meet strict criteria first, the two government-backed mortgage giants said.

The new loans will only be doled out to those who buy private mortgage insurance, have a credit score of at least 620 and offer complete documentation of their income, assets and job status. And, to further mitigate risk, the agencies will require borrowers to receive home ownership counseling.

Both programs are for fixed-rate loans given to first time homebuyers and those seeking to refinance. Fannie will start backing the loans as soon as December 13, while Freddie will start offering them March 23.

 

The move should expand access to credit for first-time homebuyers, typically younger buyers who have not have had enough time to save a big lump sum.

Fannie and Freddie already back mortgages with as low as 5% down. And the Federal Housing Administration insures 3.5% loans.

Still, according to Mark Palim, who directs economic and strategic research at Fannie Mae, it's a welcome expansion of credit.

"It's not a radical departure from what we're doing now, but anything at the margins helps," he said.

The 3% loans from Fannie and Freddie should also offer some advantages over the 3.5% down loans offered by FHA, according to Palim.

For example, the FHA loans require borrowers to pay for private mortgage insurance premiums for the entire term of the mortgage -- typically 30 years. That means adding an extra 1.35 percentage points to monthly mortgage rates. A loan carrying a 4% rate, for example, becomes a 5.35% mortgage.

[accuman]

emo bhayya 2007 recession appudu kuda same

 

adigina prati okkadiki appu ichharu

 

 

chudali for good or bad

 

 

kakapothe mana vallu andaru illu kontaru

 

140 approve ayyina vallu

[Guest]

emo bhayya 2007 recession appudu kuda same

 

adigina prati okkadiki appu ichharu

 

 

chudali for good or bad

 

 

kakapothe mana vallu andaru illu kontaru

 

140 approve ayyina vallu

ippudunna same checks untaayi..just downpayment taggincharu from 5 to 3%

[MeetFriendz]

ok

[k2s]

FHA loans ki min 3.5% down chesi konachu illu... So what r they trying to tell now?

[mukunda1]

so malli recession in 2018 onwards annamaata..ippati nunche prepare avvali ayithe.

 

[mukunda1]

emo bhayya 2007 recession appudu kuda same

 

adigina prati okkadiki appu ichharu

 

 

chudali for good or bad

 

 

kakapothe mana vallu andaru illu kontaru

 

140 approve ayyina vallu

 

i guarantee you that 2018 tharuvatha recession

 

[ARYA]

i guarantee you that 2018 tharuvatha recession

 

ne notlo 

[mukunda1]

ne notlo 

 

2001 onwards ilage start sesaranta. 2007 lo recession started....thats y i m telling you.

 

[ARYA]

2001 onwards ilage start sesaranta. 2007 lo recession started....thats y i m telling you.

 

nidra poye mundu oka manchi maata seppu 

[mukunda1]

nidra poye mundu oka manchi maata seppu 

 

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[ARYA]

vizag lo google r&d center voche opportunity vundani intelligence report. cbn lobbying....

 

ee PPT news lu manakenduk gani vere maata seppu