2015 guidelines rolling out from FHA with Fannie Mae and Freddie Mac for first time homeowners


Nation: Fannie Mae and Freddie Mac, with the Federal Housing Administration (FHA), are rolling out their 2015 offerings, which includes a drop from 1.35 to 0.85 percent in the premium borrowers with an FHA-backed home loan must pay for mortgage insurance. That means some borrowers could buy a home with a down payment as low as 3 percent.


The guidelines for eligibility still require borrowers to have enough income for monthly payments, and the reduced rate is only applicable for homes to be used as the primary residence of a borrower.


The FHA is also offering further clarification for banks as to the types of situations that could trigger a loan buyback in the future, so banks can better determine any additional restrictions – those restrictions often being in place to protect the bank from having to buy back loans sold to the government – that might be added by the bank to the qualifications set by the FHA eligibility requirements.


Potential borrowers that had already applied for home loans are currently being allowed to cancel those applications, and then reapply immediately under the reduced rate that rolls out at the end of January.


Those changes and updates are part of the larger plan to allow more first-time homeowners and to return the housing industry to a pre-2008 stature, one with more security in place to avoid any further crises.


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