The National Association of REALTORS (NAR) predicts a revival in the first-time home buyer market after Fannie Mae and Freddie Mac announced they will offer 3% down payment loans.
Previously, Freddie and Frannie issued loans with a minimum 5% down payment (and the standard down payment for mortgages insured through Freddie Mac and Frannie Mae was 20%). This development could make home ownership more realistic for first-time buyers.
This follows a downward trend in first-time home purchases. The NAR reported that despite improving job market and low interest rates, the share of first-time buyers fell to 29%, its lowest point in nearly three decades.
According to the NAR article detailing the new loans:
The new loans announced by Fannie Mae and Freddie Mac will be fixed-rate mortgages for up to 30 years, available only on a primary residence. Fannie plans to begin issuing the 3 percent loans before the end of the year. Mortgage insurance payments will be required, and qualified buyers will need to complete a financial counseling program.
At Hodnett Cooper Real Estate, we love helping first-time buyers find the perfect spot to call home in St. Simons Island, mainland Brunswick, Glynn County and all of the Golden Isles. Now is the perfect time to explore your options. Contact a Hodnett Cooper REALTOR today.
Source articles: Stage Set to Revive First-Time Buyer Market