Breaking News for the Real Estate Market
Breaking news for the real estate market has recently reported, and the news reflects much anticipated positive changes for homebuyers in the months to come.
Firstly, the final qualified residential mortgage, or QRM, rule eliminates the highly controversial requirement of a specific down payment amount, bringing the rule in line with the Consumer Financial Protection Bureau’s qualified mortgage, or QM, rule. The latter was created to protect borrowers from predatory lending practices.
Secondly, Fannie Mae and Freddie Mac are releasing new guidelines that will allow borrowers with lackluster credit profiles to obtain loans with a down payment as low as three percent by considering “compensating factors.” Additionally, Fannie and Freddie also plan to loosen demands on lenders to buy back defaulted mortgages, creating more stability, confidence and clarity for the lending industry.
“This is great news for our industry, and it’s a welcomed change we’ve been advocating at RE/MAX. Taking a measured but less stringent approach to lending creates more stable housing conditions and, most importantly, opens the doors to homeownership for qualified, willing homebuyers who’ve been sidelined in the wake of the downturn.” - Margaret Kelly, RE/MAX CEO
The breaking news from these real estate industry changes has been well received by many. These government plans are designed to help first-time homebuyers, as well as those who earn lower incomes, to more easily obtain government-backed loans. For more information about the upcoming housing industry modifications or to find out about qualifying for a home loan in the Phoenix area, please contact the Russo Team today. –Frank
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This communication is provided to you for informational purposes only and should not be relied upon by you. RE/MAX Professionals is not a mortgage lender and so you should contact a qualified mortgage consultant directly to learn more about its mortgage products and your eligibility for such products.