The Federal Housing Administration will reduce the annual premium borrowers pay for insurance starting this month, a move that the agency hopes will help more Americans get access to mortgages and expand homeownership overall.
The advocacy groups allege that Fannie Mae maintains and markets its foreclosed properties in white neighborhoods “consistently better” than in middle- and working-class African American and Latino neighborhoods.
He encouraged eligible borrowers to take advantage of HARP now while mortgage rates remain historically low (the 30-year fixed averaged 3.80 percent this week).
In 2014, 25 percent of buyers using conventional or FHA loans put less than 3 percent down when purchasing a home, down from 27 percent in 2013.
The programs launched recently are aimed at bringing back first-time home buyers to the housing market who have been unable to qualify for tighter lending standards or obtain the necessary 20 percent cash down-payment.
Falling oil prices and dropping yields on long-term Treasuries are helping push down mortgage rates even further, with the 30-year fixed rate down to 3.66 percent this week, its lowest level since the week ending May 23, 2013, says Freddie Mac.
With mortgage rates hovering below 4 percent into the new year and more “low downpayment” opportunities provided by Fannie Mae and Freddie Mac, 2015 is looking to be a friendlier year for first-time homebuyers.
The critics of a new program from mortgage giants Fannie Mae and Freddie Mac are crying foul and declaring that a rerun of the housing market bubble could be in the works.
The U.S. mortgage financing giants Fannie Mae and Freddie Mac announced Monday a renewed and expanded effort to expand homeownership to qualified borrowers through programs that require only 3 percent downpayments.
Economists, bank regulators and consumer advocates are increasingly concerned about the monthly payment shock that will hit borrowers at the end of the interest-only period.