F.H.A. Loans Preferred

SOURCE: Mortgage News Feed

About a year has passed since Fannie Mae introduced a mortgage program requiring only 3 percent down, an effort to put homeownership within reach of more first-time buyers. Freddie Mac introduced a similar option in March. But neither product has enticed first-time buyers as hoped. As of the third quarter, those high loan-to-value products accounted for less than 3 percent of all high-L.T.V. loans, according to data from Black Knight Financial Services, a provider of mortgage data and technology. Instead, as they have since 2009, when the housing market collapse caused conventional lenders to pull back sharply, buyers continue to flock toward low-down-payment loans backed by the Federal Housing Administration and the Department of Veterans Affairs. These loans continue to make up at least 90 percent of all high-L.T.V. home purchase originations, compared with about 33 percent in 2007, according to Black Knight. Read Full Article Here >> 

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