FANNIE & FREDDIE

By
Real Estate Agent with Ebby Halliday Realtors

The Fannie/Freddie bailout was very timely and well thought out. If you think things are goofy now, imagine Fannie and Freddie being insolvent!!  The government insured the viability of mortgage financing. We have functioning markets just like we always have had. In fact, rates have dropped since this announcement.   Right now, in Texas, with rates at or below 6% - you couldn't find a better time to buy. I understand it's a tumultuous stock market and that may hold some people back, but this window on rates won't stay open indefinitely. Longer term, we have to pay for these bailouts and rates will eventually trend upward.  
 
  There's plenty of money to loan. Loan amounts under $271,000 can go FHA. Loan amounts under $417,000 can go conventional. The rates are low!!! Once you get over $417,000 they jump way more than they did before. However, Home Team still has good 2nd lien sources to get a combined 1st and 2nd at a decent blended rate. We can do your 500k's, 600k's and 700k's with a decent down payment and good credit.  Once you get up into 800k and beyond, it's gets dicer. We still have sources, but they are deal by deal or more accurately: borrower by borrower.  You can imagine how difficult financing is in the higher cost areas. Again, affordability in Texas is a huge factor in why things here aren't as bad as they are nationwide. 
 
   There is more fallout to come: WAMU will get bought, the brokerage industry has issues to resolve from investing in sub-prime loans, some homebuilders won't make in through winter, etc. These are national events and they will affect all of our 401k's, but we will continue having houses to buy and sell and there will be financing.

Comments (0)