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Great news. Fannie mae just requires a minimum of 3% downpayment. It is the same as FHA's minimum down.
Is this meaningful in any way? Everything over 80% requires PMI anyway, and none of these guys are insuring in declining zip codes (correct? agents/lenders?) So Fannie can make this big announcement and look like they are helping, but it is absolutely meaningless as far as increased high LTV volume in declining markets.
Subway,
Good question, however MI guidelines are not universal between the different companies. There are still companies out there that insure declining markets.
"Is this meaningful in any way? Everything over 80% requires PMI anyway, and none of these guys are insuring in declining zip codes (correct? agents/lenders?) So Fannie can make this big announcement and look like they are helping, but it is absolutely meaningless as far as increased high LTV volume in declining markets."
Well it IS helpful to the average income homebuyer.
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How so Jay? Who cares what the down payment is lowered to if no one will insure it?
Bublleburst, there are still companies that will insure it. MI guidelines differ between companies, and the samller ones that didn't get burned are hungry for business.
Lender rating
Since January 2009
I'm hungry for more cowbell.
CL, I don't see you venture over here much.
Lender rating
Since January 2009
No use really. Unless you enjoy arguing.
lol
I don't believe this change will have huge meaning for those trying to buy into declining markets with very low down payments. PMI is really the sticking point on those loans. Without PMI, the mortgage doesn't get done.
To get insurance on a 97% loan where I live (a declining market if there ever was one) takes spotless credit, strong verifiable income and assets, and low debt. In other words, the type of people who do not need a 97% LTV loan.
roaches++, you guys need to chilout first. it is not the mortgage limit that is restricting people to buy.
it is the price you damn it. it is declining at a rapid pace and scares the sh!t out of everyone. so stop wasting your time in preaching this bs.
Well it IS helpful to the average income homebuyer.
Rob - does it really? If you were to try to price a 97% loan to value in say LV or Sacramento with a 650 credit score and only a marginal debt to equity ratio would the loan go through?
Or more realistically would you need 720 credit score with a very good dti ratio?
The problem is of course that scenario 1 is by far and away the more prevalent than 2
Regards
Lender rating
Since January 2009
jal74-----> FHA works on either scenario all day. FYI
... and, it's free and anonymous
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Fannie Mae scraps higher downpayment requirements
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Rob Cochems
Mortgage Lender
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Fannie Mae is doing away with higher minimum down-payment requirements for borrowers in parts of the country where home prices are dropping.
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