Yesterday, Fannie Mae announced a new policy to make every effort to help the mortgage and real estate markets by reducing down payment requirements in areas that were previously designated "declining zip codes'.
Big Brother must be listening or at least reading Wexzilla.com (please see May 1st Blog -Is the declining zip code a self-fulfilling prophecy? )
According to Fannie Mae the new national down payment policy will supersede the policy the company adopted in December requiring higher down payments in markets where home prices are declining , essentially requiring higher down payments in these markets (virtually all of greater Phoenix was designated as 'declining' zip code.
Beginning, June 1st for loans that the company will buy or guarantee, Fannie Mae will accept up to 97% loan-to-value (LTV) , only a 3% down payment for most loans. 5% down payment for less stringent underwriting.
As part of its "Keys to Recovery" Initiative announced May 6th, , Fannie Mae continues to make every effort to to encourage legislation to help aid an expeditious recovery in the mortgage and housing market.
This initiative should help ease the difficulty for borrowers to get loans and as a result we should see more purchase and sales of homes from Scottsdale to Mesa to Fountain Hills to Peoria to Glendale and throughout all of metro Phoenix.
Fannie Mae has been commended by both Republicans, Democrats, the National Association of Realtors ( NAR Commends Fannie Mae) , the National Association of Home Builders and and the National Housing Conference .
I would also like to say that again today, as it has done so many times for millions and millions of families across the country, Fannie Mae has shown itself a pioneer in the housing and lending industry and a friend to the American homeowner.
We urge that Freddie Mac follow your lead and the House, Senate and President listen and learn when deciding on future legislation.
On behalf of Wexzilla's many readers. We applaud you Fannie Mae!
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Copyright © 2008 By James Wexler, All Rights Reserved. *Good News - Fannie Mae reduces down payment requirements*
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Are each area's rules different? We have been in depressed and declining zip codes for over 8 months and have always had the 3% down payment requirement.