Fannie Mae and Freddie Mac Change Declining Market Guidlines

By
Real Estate Agent with Tanya & Co./Keller Williams

Effective June 1, 2008, Fannie Mae and Freddie Mac have dropped their "declining market" policy requiring an addition 5% down payment for properties determined to be in declining or "at risk" markets. Hopefully this will impact Jumbo loans as well as conforming loans but a formal announcement has not been made. This is good news for buyers and sellers especially in neighborhoods that are categorized as "declining." Hopefully, programs will continue to be announced to help buyers and sellers in this market.

Comments (2)

Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

According to the meeting I had this morning with one of my best lenders the rule changed from tagging an entire county as declining and are allowing the appriasers to determine by neighborhood whether a property may be in a declining market.  If there are over 10% REO properties for sale in a neighborhood the appriaser can still tag the property as in an at risk neighborhood and the 5% rule can still apply.

May 28, 2008 02:05 PM
Tanya Johnson
Tanya & Co./Keller Williams - Ashburn, VA

Thank you Cindy for the clarification. I do appreciate it and apologize for taking so long to send a response to you.

Jun 09, 2008 03:30 PM

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