Fannie Mae Loan Qualifications

The dream of home ownership will become a reality for more low-income and first time home buyers!  Government mortgage giants Freddie Mac and Fannie Mae announced that they will begin backing loans with as low as 3% down payments and credit standards will become looser.

Additionally, the mortgage giants have instituted new guidelines that will benefit independent lenders. This will help prospective buyers as well, as independent lenders may now more easily qualify applicants for a loan.

Experts from Fannie Mae and the Federal Reserve have reported that the average credit score for buyers has decreased slightly in the past few months, although they warn that lenders will never return to the lax underwriting standards that we saw in the mid 2000s. While loans may become a bit more easier to secure, “They’re very concerned about reputational risk,” Mark Palim of Fannie Mae explains.