Mortgage Firms Detail
Aid Programs
Fannie Mae and Freddie Mac plan to offer new low-down-payment initiatives targeting first-time home buyers, lower-income borrowers, and people who have not owned a home for at least a few years. The companies will back mortgages with down payments of as little as 3 percent. The programs could be available to borrowers with credit scores of as low as 620, the companies' current minimum for other loans. Borrowers would have to meet criteria that offset the increased risk, such as high reserves or lower debt-to-income ratios. Still, the new loans will offer borrowers an alternative to pricey mortgages backed by the Federal Housing Administration. The Fannie Mae program will be available almost immediately, while Freddie Mac expects to roll out its offering by March.
From "Mortgage Firms Detail Aid Programs"
Wall Street Journal (12/09/14) P. A2 Light, Joe
Fannie Mae and Freddie Mac plan to offer new low-down-payment initiatives targeting first-time home buyers, lower-income borrowers, and people who have not owned a home for at least a few years. The companies will back mortgages with down payments of as little as 3 percent. The programs could be available to borrowers with credit scores of as low as 620, the companies' current minimum for other loans. Borrowers would have to meet criteria that offset the increased risk, such as high reserves or lower debt-to-income ratios. Still, the new loans will offer borrowers an alternative to pricey mortgages backed by the Federal Housing Administration. The Fannie Mae program will be available almost immediately, while Freddie Mac expects to roll out its offering by March.
From "Mortgage Firms Detail Aid Programs"
Wall Street Journal (12/09/14) P. A2 Light, Joe
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