South Bay Vision | Market Update | December 2014

Although inventory remains low as we close out 2014 we are encouraged with the news released December 8th with Fannie Mae and Freddie Mac announcing that they are expanding access to credit for well-qualified first-time buyers struggling to enter the housing market. “Saving enough money for a down payment is the biggest hurdle for most first-time home buyers, but this program will help remove that barrier, and at the same time, lenders can be assured they are providing a safe, affordable loan to creditworthy borrowers.”*

Lenders as well as the California Association of Realtors applaud Fannie Mae and Freddie Mac in their move to lower down payments to as little as 3 percent for first-time home buyers and permit refinancing borrowers to reduce equity to 3 percent to cover closing costs.

Both programs are for fixed-rate loans given to first time homebuyers and those seeking to refinance. Fannie will start backing the loans as soon as December 13th 2014 while Freddie will start offering them March 23rd 2015.

Please enjoy. Should your plans include real estate purchase and sales, please call or email with questions – and as always, thanks for your referrals!

Sources:

*C.A.R. President Chris Kutzkey

* CNN Money

To see the entire article including graphs and stats click >HERE<