Posted by: Roby Robertson | May 20, 2008

Good News Lake Norman,Fannie Lowers Down Payments

Lake Norman Buyers and Sellers, Fannie Mae is loosening it’s Lending Requirements!

Information courtesy of CNNMoney.com.

The government-sponsored mortgage finance company said May 16th it will require minimum down payments of between 3% and 5% for all loans that it guarantees. That replaces a December policy that required a higher minimum if the loan was for a home in a zip code with declining real estate prices.

Fannie Mae and its smaller sibling, Freddie Mac (FRE, Fortune 500), had been under intense pressure to relax lending policies that had been tightened in recent months as foreclosures and defaults skyrocketed.

Fannie Mae’s new declining market policy will make financing more affordable and available and help stabilize the credit markets, said the National Association of Realtors®.

We are pleased Fannie Mae took action to remove the extra 5 percent down payment on homes in declining markets.” Gwen MuseEvans, Fannie Mae vice president for credit policy and controls, told hundreds of Realtors® earlier in the week that Fannie Mae would be replacing the existing policy that imposed additional fees and tighter underwriting on markets that are considered declining, for a policy that allows buyers to borrow up to 95 percent loan-to-value, even in markets in which prices have declined. “We heard the concerns of NAR and we reviewed and determined that changes in our policy were needed,” said MuseEvans. “The Fannie Mae decision is huge and will have a positive impact, perhaps significantly, on the housing market. We are very appreciative to Fannie Mae for listening to us and agreeing that these changes were needed to help more families achieve the dream of homeownership,” said Lawrence Yun, NAR chief economist. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

As a member of NAR, I am proud that we are continuing to be an advocate for home buyers and sellers. Please contact your Lake Norman Agent at 704 451 7051 to contact a preferred lender or obtain FREE area information.

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