Getting A Mortgage Is About To Get Much Much Easier

Fannie Mae and Freddie Mac, two mortgage backing giants that back the majority of all mortgages, are putting new lending guidelines in place that make it easier for borrowers to secure loans. “Under the new rules, any loans with no missed payments for 36 consecutive months after they were first issued will be backed by Freddie or Fannie should they default. The agencies will also allow two missed payments in the first 36 months without forcing borrowers into foreclosure.”

Both Fannie and Freddie have said they will start backing 3% down loans. This puts homes well within reach, especially if you use MT Real Estate for your purchase. Assuming that it has a 3% co-broke commission, when you get your 1/2 (1.5%) back from your, you should have no problem coming out of pocket for your down payment! Of course, lenders are not expected to return to the lax underwriting standards of the boom years. Banks are being smarter this time around, but it should still help get many into homes that may not have been able to otherwise.
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