Fannie Mae Home Path – Special offer: Fannie Mae will pay 3.5% of the buyer’s allowable closing costs through June 30, 2011. There are over 162,000 homes for sale by Fannie Mae in the US. This amounts to 15 Billion dollars of real estate and $900 Million Dollars of Realtor commissions. Many of these homes are offering the realtor a bonus for selling home.
Mortgage Insurance Companies are starting to ease underwriting guidelines, which will ultimately result in more buyers qualifying for homes. A couple of changes for the better are: 45% debt-to-income ratio (used to be 41%), lowering credit score requirements, and the ability for the buyer to lower their monthly housing payment with multiple MI options - One being that the buyer can pay upfront MI and have NO monthly MI premium. For example: on a $250,000 purchase price, the buyer can save $193 each month by paying upfront MI. This would allow the buyer to purchase an additional $37,000 in home price. On a side note, condo requirements are easier, such as no Pre-sale requirements with 70% owner occupied.
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