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"Opinions expressed are solely my own and do not express the views of my employer."
On Monday, Fannie Mae formally announced their 3% down payment programs would be returning as soon as December 15, 2014! This is really great news for the first-time home buyer, many of whom are typically younger buyers who have not yet had enough time to save a big lump sum for a down payment.
As with any low down payment program, there are fears that a new wave of foreclosures will start appearing. Federal Housing Finance Agency Director Melvin Watt was quoted in a recent HousingWire article, addressing this concern:
"To mitigate risk, Fannie Mae and Freddie Mac will use their automated underwriting systems, which include compensating factors to evaluate a borrower's creditworthiness. In addition, the new offerings will also include home-ownership counseling, which improves borrower performance. FHFA will monitor the ongoing performance of these loans."
Freddie Mac will also roll out the 3% down program as early as March 23, 2015.
Remember, as with any new program, there will be specific guidelines that need to be followed. At Primary Residential Mortgage, Inc., we pride ourselves on providing you with Knowledge Based Lending. Contact us today for more information on this and the many other mortgage products we provide at PRMI.