Fannie Mae and possibly Freddie Mac in the future are rolling out new guidelines to help new homebuyers along in the process. It will essentially allow new home buyers to use gifts and grants from nonprofit groups or family as 5% of their down payment. This will keep them from being required to use 5% of their own money as down payment, as was required previously. This will most likely boost sales among young couples and first time homebuyers who previously would have been unable to afford the down payment. It will allow them to get help from family or from a non-profit group that agrees to help them, and in a time of economic downturn it is a huge deal to be able to buy your own hoe rather than pay monthly rent for the next few years.
Of course there are a few restrictions, one of which being that it has to be a single family residence. So no beachside condos as included- sorry! They have also increased the number of years a person will be excluded from financing if they went through a foreclosure from 4 to 7 years.
But at least someone is looking out for the first time homebuyers who need a little help with their first home purchase! Live the American dream!
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