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Home Mortgage Financing

Fannie Mae Introduces Enhanced Affordable Mortgage Program That May Be A Game Changer For You!

Submitted by Joseph Pettinella on January 6, 2016 - 5:05pm

After much research and feedback from lenders as well as home buyers, Fannie Mae has announced that it will provide an enhanced affordable lending product designed to meet the financial needs of responsible, credit-worthy buyers.  

Fannie has recognized the many financial challenges many would-be homebuyers are facing.  Many can't afford a large down payment, they may have multiple student loans, and/or they may rely on income from non-traditional sources, such as parents or other family members.  These factors have impacted the ability of a lot of people from qualifying for a mortgage.  Well, that may be about to change . . . perhaps for YOU!

The new program, called the HomeReady™ Mortgage, will be available from lenders later this year, and will offer expanded eligibility guidelines which will be real game changes for a lot of people who could not previously qualify for a mortgage:

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More Home Buyers Financing With Non-Bank Lenders

Submitted by Joseph Pettinella on November 6, 2015 - 3:24pm

According to the Federal Reserve, an increasing number of home loans are being done by non-bank lenders . . . independent mortgage companies, such as Quicken Loans, Loan Depot, and other large and small nondepository lenders. 

Independent mortgage lenders tout their ability to complete transactions online, and in some cases the borrower may not even need to speak to a loan officer.  They also claim to offer more flexibility in the types of loans they offer.

Banking institutions, on the other hand, may be able to offer better rates and closing costs than independent mortgage companies based on the length of account history and amount of holdings.

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Have Your Eye on a Fannie Mae HomePath Property?

Submitted by Joseph Pettinella on April 20, 2015 - 4:19am

Would you spend 4-1/2 hours and $75 for a homebuyer education course if doing so would save you 3% on closing costs?  This equates to $4,500 on a $150,000 house.

Fannie Mae has a new program to help buyers save money at closing when they purchase a Fannie Mae HomePath listing, which is a foreclosed home owned by Fannie Mae.  Under the program, qualifying first-time homebuyers can receive up to 3% of the purchase price of the subject property in closing cost assistance and reimbursement of the $75 cost of the homebuyer education course at the time of closing.

The homeownership education course, which contains nine, thirty-minute sessions, is entirely online and covers both the complexities of home buying and the responsibilities of owning a home.  To be eligible for the closing cost assistance and the reimbursement of the training cost:

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FHA Lowering Mortgage Insurance Premium by .5%

Submitted by Joseph Pettinella on January 9, 2015 - 1:25pm

It has just been announced that the FHA will lower its mortgage insurance premiums from 1.35 percent to 0.85 percent. This reduction could save a borrower $1,000 a year on a $200,000 loan.  That $84 per month can make a significant difference for first-time homebuyers who will be able to qualify for more home for their money.

It appears the FHA made this decision to increase its share of the mortgage market.   Since Fannie Mae and Freddie Mac are now offering a 3% down payment loan program, many buyers looking to buy with the least amount of money down will be attracted to this new financing option.

This is all good news for borrowers and for home ownership, and we expect to get more good news in the near future.  

FHA Lowers Its Harangued Mortgage Costs -

Responding to recent calls from industry leaders and associations, the Federal Housing Administration announced it will lower its insurance... [NAR Daily News Magazine]

Qualifying for a Loan After a Short Sale - Is the Waiting Period 2 Years or 4?

Submitted by Joseph Pettinella on December 18, 2014 - 10:08am

If you sold a property on a Short Sale within the past few years, you were probably informed by the lender that according to Fannie Mae guidelines you could qualify for a new loan after a 2-year waiting period.

Unfortunately Fannie Mae recently changed those guidelines to a 4-year waiting period.  

Read more about it here:  Buying after a Short Sale? The Wait Just Got Longer - (TNS)—Q: We completed a short sale about two years ago. We have been renting and saving our money to buy a new home after the two-year waiting period imposed by Fannie Mae. When we applied for our new loan, we were told that now we have to wait another two years. We are very upset […] [RisMedia Consumer News]

Will the Easing of Fannie & Freddie's Lending Guidelines Make a Difference For You?

Submitted by Joseph Pettinella on December 3, 2014 - 2:31pm

Although Fannie and Freddie released new lending guidelines on Monday, it looks like many of the large lenders are not all that anxious to make any changes as yet.  Eventually these new guidelines will have an affect to help loosen the tight credit market, but you may need to be a little patient.

Shopping around for your mortgage is certainly recommended.  Some lenders may adopt new rules quicker than others.  There is a good possibility you will soon start seeing some different kind of promotions from the lenders who will lead the way.  

We are optimistic that more opportunities for home loans will be opening up.  Read more about what the experts have to say.  Did Mortgages Just Get Easier to Obtain? -

Fannie Mae and Freddie Mac's new lending guidelines went into effect Monday, which are expected to help loosen up the tight credit standards... [NAR Daily News Magazine]