FHFA to Loosen Rules on Mortgages, Offer Lower Down Payment Options
✉️ Want to forward this article? Click here.
In an effort to give more first-time buyers and low-to-middle income earners a better chance to buy a house at low rates, the Federal Housing Finance Agency announced on Monday a plan to loosen rules on mortgages.
“We know that access to credit remains tight for many borrowers, and we are also working to address this issue in a responsible and thoughtful manner,” Melvin Watt, the director of the FHFA, said in a speech at the Mortgage Bankers Association Annual Convention.
As part of the changes, the FHFA said it would create specific guidelines for mortgages with loan-to-value ratios between 95-and-97 percent to “increase access for creditworthy but lower-wealth borrowers.” While Watt’s speech did not offer much in the way of specifics, it has been reported that the new plan, to be outlined in the coming weeks, could allow for down payments as low as 3 percent for certain borrowers.
“Through these revised guidelines, we believe that the Enterprises will be able to responsibly serve a targeted segment of creditworthy borrowers with lower-down payment mortgages by taking into account ‘compensating factors,’” Watt said.
This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/fhfa_to_loosen_rules_on_mortgages/9119.
Most Popular... This Week • Last 30 Days • Ever
Forest Hills Connection is reporting that the owner of the Days Inn along Connecticut... read »
The 67-room luxury hotel will be located at 3000 M Street NW, the site of the old Lat... read »
On Monday, the listing price for the 30,000 square foot home that was originally buil... read »
The eight-bedroom estate built by Banks Development along Chain Bridge Road will be l... read »
DC's Historic Preservation Review Board looks poised to approve changes for one of th... read »
- A Plan For More Development In Van Ness?
- Jose Andres Group Partners On New Georgetown Hotel
- The Price For Dan Snyder's Former Potomac Home Drops By $5 Million
- DC Home At Site Of Former Cafritz Mansion Set To List For $23.5 Million
- HPO Recommends Approval For Changes To 280-Unit Building At DC's Reservoir District
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro