Mortgage News Update - Reduced Downpayment & PMI

Real Estate Broker/Owner with Great American Dream Realty

Fannie Mae and Freddie Mac have announced that their minimum downpayment requirement for first time home buyers has been reduced to 3%.

Freddie Mac has a program called Home Possible Advantage which is a conventional mortgage program geared towards low and moderate income buyers. Buyers must participate in a mortgage borrower education program to qualify. Any buyer can utilize Fannie Mae's loan provided at least one co-borrower is a first time home buyer. Both programs require private mortgage insurance.

There is good news on the mortgage insurance front, as well. The Federal Housing Administration (FHA) will reduce annual mortgage insurance premiums by .5 percentage points from 1.35% to .85%. This reduction in premium translates into roughly a $1,000 savings over one year on a $200,000 loan. The minimum downpayment requirement on an FHA loan is currently 3.5% of the purchase price. FHA insures approximately twenty percent of all mortgages.




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Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Lisa, that is good news and I am all for the HPA program where consumer education is required to participate in the program.  Enjoying the blowing snow and cold in Indiana!  Finally winter is here.  Hope all is well in Vermont!  Any bears lately?

Jan 08, 2015 09:11 PM #1
Jenna Dixon
DRA Homes | Cobb County Real Estate - Marietta, GA
Empowers You With a Better Real Estate Experience

So excited about the Fannie and Freddie programs.  Just waiting on a date for the FHA MI rollback.  The sooner the better!

Jan 08, 2015 09:19 PM #2
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

This sounds like a good thing for first time buyers Lisa. I like the idea of an educational program too!

Jan 08, 2015 09:36 PM #3
Katerina Gasset
Get It Done For Me Virtual Services - Wellington, FL
Get It Done For Me Virtual Services

Thank you for sharing the good news. I support the mortgage borrower education program all the way.

Jan 10, 2015 02:16 PM #4
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

What a valuable clarification hope your buyers are reading it Lisa. On a side note love the house, is that yours? Endre

Jan 17, 2015 03:01 PM #5
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Lisa Friedman

That really is a huge plus for a lot of buyers looking to keep their payments down

Jan 18, 2015 02:05 AM #6
Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

I was just at a conference and the Calif. Assoc. of Realtors Chief Economist spoke and said across the board rates are down and holding, employment up, unemployment down. It is good that FHA is down to 3% down and the education class is important for buyers. I have had buyers attend a class and once they did it with a Spanish intrerpreter after they flunked due to not understanding. It was great and they ended up getting 100% the second time.

Jan 28, 2015 12:09 PM #7
Robert Vegas Bob Swetz
Las Vegas, NV

 Hello Lisa ... this is very good news and so happy to see you throw a post out to AR ;o)

Feb 09, 2015 01:38 AM #8
Lisa Friedman
Great American Dream Realty - Essex, VT
30 Years of Real Estate Experience!

Endre, it is one of my listings.

Yes, the home buyer education program is a very good thing.

Feb 09, 2015 06:14 AM #9
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I was looking for your current blogs.

Happy Valentine's Day!

Feb 14, 2015 07:18 AM #10
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Hey Lisa hope you are having a great Valentine's Day stay warm. BTW did you get hit with all the snow like Boston did? Endre

Feb 14, 2015 08:27 AM #11
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Lisa Friedman

30 Years of Real Estate Experience!
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