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Real Estate Analysis and Commentary in WINTER HAVEN

Fannie Mae & Freddie Mac Lower Down Payments
December 13th, 2014 1:49 PM
This week Fannie Mae and Freddie Mac announced that they were lowering the minimum down payment for single family residential mortgages from 5% to 3%.  This is an attempt to increase the first time home buyer market which has shrunk since the 2008 housing bubble burst.  I see  it as a return to the lending practices that got us in the Great Recession 2008 -2009.  With less skin in the game, borrowers are more likely to walk away from their homes if a job is lost or an illness strikes.  As a appraisers, we welcome increased lending as it helps our business grow.  However, I am not sure this change is what is needed to get the economy going.

Posted by Dave Hohman, ASA on December 13th, 2014 1:49 PMPost a Comment

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