Fannie Mae Is Getting Another Facelift
May 27th, 2008 categories: Buyers, Real Estate News
I wrote an article a couple of months back concerning 100% financing going away for areas deemed a “declining market.” Since most places are in this categorie it has become the norm to put at least 5% down on a home unless you were using non-conforming loans. In fact 5% was the minimum you could expect, many have had to put down over 10%. This stretch has forced some buyers out of the market until they were able to collect the needed assets before buying.
The principle with loans for the last year has been to expect change hour by hour. Things seem to change daily. And, so that I don’t contradict that principle you should know that Fannie Mae is adjusting again. Don’t be dismayed, this is a good one.
The Associated Press says, “The government-sponsored mortgage finance company said Friday it will require minimum down payments of between 3 percent and 5 percent for all loans that it guarantees. That replaces a December policy that required a higher minimum if the loan was for a home in a zip code with declining real estate prices.”
Since neighborhoods can vary in value within zip codes they are allowing appraisers to make the determination of if a home is in a declining market.
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It is sad that for many people even 3% is more than they have available to use as a down payment. I think stressing savings would be a benefit to us all.
thanks for sharing your views ..