Will 3% Mortgages Boost the Housing Market?
Fannie Mae and Freddie Mac, government-sponsored enterprises, detailed guidelines this week to buy loans from lenders made to borrowers at up to a 97% loan-to-value ratio. As a result of this increase in LTV, borrowers will be able to obtain mortgage loans with as low as a 3% down payment under some Fannie and Freddie-backed programs. This move is expected to have its biggest impact on the first-time homebuyer and provide a boost to the moribund housing market.
