More low down payment options may be on the way
Posted on Wednesday, October 21, 2015 at 9:48:15 AM
Homebuyers previously locked out of the market due to strict credit standards or expensive residential financing are finding their window into sector widening as the year winds down, and a recent announcement could afford them even more opportunities.
The CEO of Freddie Mac, one of two mortgage backing firms under the conservatorship of the Federal Housing Finance Agency - the other being Fannie Mae - announced at a convention that new low down payment options could be on the way, according to MarketWatch. The government-sponsored enterprise offered options for down payments as low as 3 percent last year, and is considering expanding that program to increase access to residential financing.
"There are still some nooks and crannies left in the mortgage market to fill," Donald Layton, the Freddie Mac CEO, said at the Mortgage Bankers Association's annual convention.
These new down payment options could open up a once very exclusive market to even more homebuyers - including those new to the process - in conjunction with interest rates below 4 percent and loosening qualification requirements for home loans.