Will 3% Mortgages Boost the Housing Market?

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.

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Michael Anderson
Michael Anderson 247 posts

Over the course of his 30-year career, Michael Anderson has worked in the residential development industry in the Pacific Northwest, Northern California and Southern California. He has acquired residential land in excess of $300M for both land development and homebuilding entities and has overseen the construction of approximately 2500 homes. Currently, in semi-retirement, and based out of Newport Beach, CA, Michael continues to invest in and stay abreast of the land markets.

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