Both Fannie and Freddie Starting New Programs Allowing for 3% Down Payment

Today’s News Synopsis:

Fannie Mae just announced a new program that will allow first-time homebuyers to put down a payment of as low as 3%.  In the same way, Freddie Mac is launching their own Home Possible Advantage program that will also allow homeowners a 3% down payment.  The National Association of Realtors predicts mortgage rates will increase by up to as much as 5% next year.

In The News:

Los Angeles Times – “Nation’s Housing: Qualifying for a mortgage may be easier than you think” (12-7-14)

“When it comes to buying a house, are you in the “no way I could possibly qualify” category? Not enough cash in the bank for a down payment or closing costs? Credit scores good but not great? So much deferred student loan debt that you assume any lender would slam the door?”

Bloomberg – “Older Americans a Pillar of Housing Market With High Ownership Rate” (12-8-14)

“Older homeowners have emerged as the pillar of the housing market following the collapse in 2008.  The homeownership rate for Americans age 65 and over has remained at 80 percent while dropping for every other age group.”

OC Housing News – “Lingering debt from collapsed Ponzi schemes hinders economic growth” (12-8-14)

“Many people fail to budget properly for unexpected expenses or expenses that do not occur monthly. When these expenses occur, most will borrow the money, often on credit cards; this debt accumulates like tooth plaque, and at the end of the year, many debtors hope for a work bonus or a tax refund to scrape the debt from the family balance sheet.”

Mortgage Professional America – “Big bank heads to trial over $629 million in alleged overcharges” (12-8-14)

“The nation’s largest U.S. mortgage lender, Wells Fargo, is headed to trial today as homeowners seek to recoup about $629 million for alleged overcharges, according to Reuters.”

Housing Wire – “Freddie Mac launches Home Possible Advantage program with 97% LTV” (12-8-14)

“Freddie Mac announced its Home Possible Advantage program, an affordable conforming, conventional mortgage with a 3% down payment to help more first-homebuyers jump into the market.”

DS News– “Hutchens Law Firm Continues ‘High Performance Giving’ Program” (12-8-14)

“North Carolina-based default servicing legal services provider Hutchens Law Firm has announced that its High Performance Giving Program, a unique holiday program for the local community that began last holiday season, is continuing this December.”

Mortgage Professional America – “NAR: Mortgage rates will inch up to 5% in 2015” (12-8-14)

“Say goodbye to the era of low rates as they are expected to increase next year, according to the National Association of Realtor’s (NAR) five top housing predictions for 2015. The report also showed first-time home buyers are expected to re-emerge in the new year after mostly staying out of the market in the aftermath of the housing crisis.”

Housing Wire – “Fannie rolls out 3% down payment option for homebuyers” (12-8-14)

“Fannie Mae is rolling out an option for qualified first-time homebuyers that will allow for a down payment as low as 3%.  Building upon Fannie Mae’s successful lower-down payment program offered through state Housing Finance Agencies, the 97% loan-to-value ratio option will expand access to credit for qualified first-time homebuyers who may not have the resources for a larger down payment.”