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 >>
About The Author
Each week we post articles on FHA/VA Government news topics, ranging from FHA Direct Endorsement Underwriters, to current FHA underwriting guidelines, to new FHA rules/regulations, FHA compliance, FHA lending requirements and much more! PLEASE NOTE: We are NOT owned, operated or affiliated with HUD, FHA or the Federal Government in any way.