More Americans to buy homes with 3 percent down

Pioneer Pres/AP ^ | 12-9-14 | Josh Boak

[TurboZamboni]

WASHINGTON (AP) — Some Americans will soon be able to buy a home with a down payment as low as 3 percent, compared with the current minimum of 5 percent, the mortgage giants Fannie Mae and Freddie Mac say.

The new lending guidelines announced by the companies Monday are designed to help more low-income and first-time buyers afford homes. Millions of Americans lost their savings or no longer had the income needed to set aside money for a home in the aftermath of the 2008 financial crisis and the Great Recession. That has held down the sales of houses and condominiums and slowed the economic recovery.

The guidelines are designed to prevent the kind of reckless lending that fueled a housing bubble and eventually triggered the recession. Borrowers must have enough income to repay loans on a monthly basis for homes that would be their main residence. This guideline would be intended to limit financial speculation.

[lonevoice]

This is great thinking.....they create the conditions causing Americans to lose their savings & their homes & then lower interest rates to convince them to spend money we still don’t have,in addition to creating interest rates on existing savings accounts that are so low they are virtually worthless. Barack’s plan seems to be moving forward nicely.

You said it all quite succintly.

[dalereed]

Less than 20% down is criminal!!!!!

[morphing libertarian]

You have an interest for you and them of getting the deal done. Also respect your time.

If you’re getting bad pre-approvals you can have perspective buyers cross qualify with your lender you trust. Explain to them the benefit.

Many listing agents do this. I don’t like it because we have a good pre-approval process, but I understand the reason.

Best wishes.

[Ol' Dan Tucker]

Barack’s plan seems to be moving forward nicely.

This ain't "Barack's" plan. He's just the latest figurehead doing his part to help those really in charge achieve their long term goal --NAU.

[CIB-173RDABN]

After paying off the house we increased our 401k contribution. We had already had that money budgeted and so rather then increase our spending we just shifted over to pay ourselves. When the economy took a nose dive and the company I was working for started cutting back, I simply retired early. Could not have done that if the house had not been paid for.

[Jimmy Valentine's brother]

TSR you are spot on with your photo. Wonder if fauxahontis, E. Warren, will comment on how the banks at the demand of the RATs are once again putting it to minorities.