Black People : New Loan Rules May Price Out Home Buyers

Discussion in 'Black People Open Forum' started by ifasehun, Sep 11, 2003.

  1. ifasehun

    ifasehun Well-Known Member MEMBER

    May 11, 2003
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    For those of you that unfamiliar Fannie Mae and Freddie Mac literally determine the flow of the home mortgage industry. Fannie Mae is the largest home mortagage company in the U.S. Freddie Mac funds quite a few home programs and community development corporations that help low-income people get into homes. This decision will effect hundreds of thousands of families.

    WASHINGTON - Manufactured homes are a popular choice for low-income families, but new regulations from mortgage giant Fannie Mae could price some of those would-be homeowners out of the market.

    Concerned about rising loan delinquencies and foreclosures, Fannie Mae has begun requiring a 10 percent down payment for 30-year mortgages on such homes, plus a fee of one-half of 1 percent of the loan amount. Previously, people could put no money down and paid no fee.

    For those who cannot afford 10 percent, Fannie Mae has introduced a 20-year loan requiring a 5 percent down payment. However, monthly payments are higher.

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