Has the inability to get a mortgage kept you from moving into the Central Florida home of your dreams? Your luck may be changing; new lending guidelines from mortgage groups Fannie Mae and Freddie Mac should make getting a loan easier.
Both groups are lowering what’s required of down payments and making it easier to classify loans as qualified mortgages. Fannie Mae and Freddie Mac will also start to back 3% down loans, and they say average credit scores for accepted loans have lowered over the past few months; that should give some peace of mind to first-time or lower-income homebuyers.
And there’s another big change, affecting what happens should you default on a mortgage: the new guidelines say that loans with no missed payments for three years will be bought back by Fannie Mae and Freddie Mac if they default. You’re also allowed two missed payments in those first 36 months, without being forced to foreclose. If you’ve been wary of trying for a mortgage because of fear of foreclosure, this change might be a small cushion that can help.
And if private mortgage insurance is cancelled for whatever reason, the lender won’t be forced to buy back the loan, increasing the likelihood of boosted mortgage lending in the future.
Think about these new mortgage guidelines—and if buying a home seems more doable in the near future, give me a call!