Market Update: Expect More Financed Buyers in 2015

A Federal Reserve survey released late this year found that 45% of renters were delaying purchasing a home because of the down payment. In 2015, these prospective buyers will have more options available to them to enter the world of home ownership for little money down.

Fannie Mae and Freddie Mac have unveiled new mortgage programs with down payments as low as 3% hoping to broaden the pool of home buyers and boost the real estate market. These programs are directed at borrowers who are using the loans to purchase single-family homes to be used as a primary residence.

Fannie Mae’s new program has already begun, and is available to anyone who has not owned a primary residence of three years and will require private mortgage insurance. Homebuyers can proceed through Fannie Mae’s standard program which will allow a 97 percent loan-to-value ratio and Fannie Mae’s usual eligibility requirements, or they can proceed through its My Community Mortgage program if at least one co-borrower is a first time buyer.

Freddie Mac’s program, Home Possible Advantage, will become effective for new mortgages with closing dates on or after March 23, 2015. It will be open to borrowers purchasing a single-family residence; who intend to use the property as their primary residence; who do not have individual or joint ownership interest in any other residential properties; and who meet certain income limit requirements. It will require a home ownership education and counseling program for first-time buyers.

Prior to these new programs, FHA was the only place that homeowners could go for low down payments. With the cost of FHA’s mortgage insurance rising, new homeowners will be relieved to have other options available to them to achieve their dream of home ownership. Should you have any questions in regards to the foregoing, please contact your local real estate attorney.


Berlin-Patten, PLLC

This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.

All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.


3700 S. Tamiami Tr, Suite 200, Sarasota, FL 34236   P (941) 954-9991  F (941) 954-9992


247 Tamiami Trail South, Suite 201, Venice, FL 34285  P (941) 955-9991  F (941) 484-9992


8130 Main Street, Suite 206, Lakewood Ranch, FL 34202   P (941) 907-9022  F (941) 907-9024

Did you find this real estate law content useful, but need actual legal counsel?

Speak to a real estate attorney!

No results found