{"id":3993,"date":"2014-12-10T16:07:06","date_gmt":"2014-12-10T16:07:06","guid":{"rendered":"http:\/\/blog.topbev.com\/?p=3993"},"modified":"2014-12-10T17:02:45","modified_gmt":"2014-12-10T17:02:45","slug":"first-time-homebuyers-given-more-options-to-buy-a-home-by-fanniemae-and-freddiemac","status":"publish","type":"post","link":"https:\/\/blog.topbev.com\/?p=3993","title":{"rendered":"First-time homebuyers given more options to buy a home by FannieMae and FreddieMac:"},"content":{"rendered":"<p style=\"background: white;\"><span style=\"font-family: Times New Roman; font-size: 12pt;\">Earlier this week new lending guidelines for first-time homebuyers were released in a statement by the FHFA Director Melvin L. Watt\u00a0. Watt wrote &#8220;The new lending guidelines released today by Fannie Mae and Freddie Mac will enable creditworthy borrowers who can afford a mortgage, but lack the resources to pay a substantial down payment plus closing costs, to get a mortgage with 3 percent down.<br \/>\n<\/span><\/p>\n<p style=\"background: white;\">\n<p style=\"background: white;\"><span style=\"font-family: Times New Roman; font-size: 12pt;\">The lower down-payment requirement will allow more first-time homebuyers the opportunity to buy a home. Often the greatest hurdle for the first-time homebuyer is saving enough for a down payment. Many first-timers would try to save 20% of the purchase price that many lenders required. It can take a significant period of time to save that large amount of a down-payment forcing first-timers to wait to buy a home. Right now with rates as low as they are it very well may be cheaper to buy than rent.<br \/>\n<\/span><\/p>\n<p style=\"background: white;\"><span style=\"font-family: Times New Roman; font-size: 12pt;\">FannieMae in its statement regarding its <span style=\"color: #333333;\">My Community Mortgage<sup>\u00ae<\/sup><\/span> &#8220;announced an option for qualified first-time homebuyers that will allow for a down payment as low as three percent. \u2026the 97 percent loan-to-value ratio (LTV) option will expand access to credit for qualified first-time homebuyers that may not have the resources for a larger down payment.&#8221; Other requirements will still have to be met by the first-timer. These include &#8220;the usual underwriting, income documentation and risk management standards. These loans will require private mortgage insurance or other risk sharing, as is required on purchase loans acquired by the company with greater than 80 percent LTV.&#8221;<br \/>\n<\/span><\/p>\n<p style=\"background: white;\"><span style=\"font-family: Times New Roman; font-size: 12pt;\">FannieMae expressed its hope that &#8220;Our new 97 percent LTV offering is simply one way we are working to remove barriers for creditworthy borrowers to get a mortgage. We are confident that these loans can be good business for lenders, safe and sound for Fannie Mae and an affordable, responsible option for qualified borrowers.&#8221;<br \/>\n<\/span><\/p>\n<p style=\"background: white;\"><span style=\"font-family: Times New Roman; font-size: 12pt;\">FannieMae will require for this program that at least one of the borrowers be a first-time homebuyer.<br \/>\n<\/span><\/p>\n<p style=\"background: white;\"><span style=\"font-family: Times New Roman; font-size: 12pt;\">FreddieMac also provided its guidelines for the low down-payment program. The program is entitled &#8220;<em>Home Possible Advantage&#8221; <\/em><br \/>\n<\/span><\/p>\n<p>FreddieMac also set forth its <span style=\"font-family: Times New Roman; font-size: 12pt;\">Key Facts:<br \/>\n<\/span><\/p>\n<ul>\n<li><span style=\"font-family: Times New Roman; font-size: 12pt;\"><em>Home Possible Advantage <\/em>offers qualified low- and moderate-income borrowers a conforming conventional mortgage with a maximum loan-to-value ratio of 97 percent.<br \/>\n<\/span><\/li>\n<li><span style=\"font-family: Times New Roman; font-size: 12pt;\">Home Possible Advantage mortgages can be used to buy a single unit property or for a &#8220;no cash out&#8221; refinance of an existing mortgage.<br \/>\n<\/span><\/li>\n<li><span style=\"font-family: Times New Roman; font-size: 12pt;\">First time homebuyers must participate in an acceptable borrower education program, like Freddie Mac&#8217;s CreditSmart<sup>\u00ae<\/sup>, to qualify for Home Possible Advantage.<br \/>\n<\/span><\/li>\n<li><span style=\"font-family: Times New Roman; font-size: 12pt;\">Home Possible Advantage mortgages are available as 15-, 20-, and 30-year fixed rate mortgages.<br \/>\n<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: Times New Roman; font-size: 12pt;\">These programs are seeking to allow the first-time homebuyer the ability to buy a home with less of a down payment but also limit the risk that the loan will go bad or default. They are focusing on the borrowers&#8217; credit worthiness as opposed to the size of their down-payment. There is always an element of risk with requiring a lower down-payment; the homeowner has less of their own money at risk. But when you balance this against the economic drag of so many potential buyers sitting on the sidelines the benefit of pulling pull them into the real estate market may outweigh that risk.<br \/>\n<\/span><\/p>\n<p><span style=\"font-family: Times New Roman; font-size: 12pt;\">We offer reduced rates for first-time homebuyers. Contact if you are thinking about buying a home. We will provide you with over a century of experience in dealing with real estate.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The lower down-payment requirement will allow more first-time homebuyers the opportunity to buy a home. Often the greatest hurdle for the first-time homebuyer is saving enough for a down payment. Many first-timers would try to save 20% of the purchase price that many lenders required. It can take a significant period of time to save that large amount of a down-payment forcing first-timers to wait to buy a home. Right now with rates as low as they are it very well may be cheaper to buy than rent.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[40,450,443,3,1],"tags":[1607,1608],"class_list":["post-3993","post","type-post","status-publish","format-standard","hentry","category-closing","category-home-ownership","category-nflpa","category-real-estate-law","category-uncategorized","tag-first-time-homebuyers","tag-lower-downpayments"],"jetpack_featured_media_url":"","jetpack-related-posts":[{"id":15011,"url":"https:\/\/blog.topbev.com\/?p=15011","url_meta":{"origin":3993,"position":0},"title":"T&#038;B Trending January 2015","date":"January 16, 2015","format":false,"excerpt":"\u00a0 T&B Trending January 2015 Vol 1-2015 Top StoryNovember 2014 Job Growth \u2013 7th Best Month in 10 Years Source: Dr. Ted C. 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Read more >> \u00a0\u2026","rel":"","context":"In &quot;closing&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":140,"url":"https:\/\/blog.topbev.com\/?p=140","url_meta":{"origin":3993,"position":3},"title":"New Restrictive Financing Guidelines are Killing our Industry-A Call to Action","date":"June 23, 2010","format":false,"excerpt":"In a recent article in the New York TIMES,\u00a0problems besetting our industry were the main focus. Examples of people who had committed to purchase as yet unbuilt homes, free standing and condominiums,\u00a0 and were now\u00a0\"trapped\" by new FNMA\/FHLMC Guidelines, which have made many financing programs much more restrictive, in terms\u2026","rel":"","context":"In \"fhlms\"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":897,"url":"https:\/\/blog.topbev.com\/?p=897","url_meta":{"origin":3993,"position":4},"title":"White House Lowers Refinancing Fees for FHA-Backed Mortgages","date":"March 8, 2012","format":false,"excerpt":"The second method of the Administration's recent acts to alleviate the down-trodden U.S. housing market applies to borrowers with FHA-backed mortgages. These borrowers will inflatable tent be able to refinance their mortgages to secure lower interest rates while paying a lesser up-front charge for the mortgage insurance premium. The White\u2026","rel":"","context":"In &quot;closing&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":868,"url":"https:\/\/blog.topbev.com\/?p=868","url_meta":{"origin":3993,"position":5},"title":"Does the attorney doing your refinance impact the sale of your home?","date":"December 8, 2011","format":false,"excerpt":"You just finished your refinance. You could not be happier. You shortened you loan term and lowered your rate. What could be better? Little did you know that the closing you completed would prevent the timely sale of your home.","rel":"","context":"In &quot;closing&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts\/3993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3993"}],"version-history":[{"count":2,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts\/3993\/revisions"}],"predecessor-version":[{"id":3996,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts\/3993\/revisions\/3996"}],"wp:attachment":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}