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Home buyers and realtors both have leaned forward recently, paying attention and ready to pounce on the opportunity that Freddie Mac has yet again, brought to offer.
If your a home buyer and have heard the news about Freddie Mac's Home Possible Advantage program, that includes a minimal 3% down payment for qualifying home buyers, then Yay!! Isn’t that great?!!
What if you are a realtor, real estate agent, or lender? What do you think of this news? Many of us remember just 10 years ago, when these low down payment mortgages started defaulting, but unfortunately, many Americans forget quite quickly. We like instant gratification. We want something, and we want it now. We don't want to think too much about the future and the affects on our decisions today.
We are hearing different opinions from the latter of the above peer groups. "Is the glass half full or is it half empty?"... for lack of a better adage.
Well, some in the real estate industry are a bit skeptical. Yes, low rates and home buying affordability is important, but is the new "Freddie Mac's Loan Quality Advisor" enough to sift through all applicants and choose only the most credit worthy?
One good thing about the new Home Possible Advantage is that the fixed rate mortgage is available for primary residences only. Yes, that helps, but is it enough?
Since my crystal ball has been in the shop for many years, I would love to hear your opinion on this news and opportunity. Whether you are a home buyer, a realtor, or both. Tell us what you think.