Charlotte Real Estate, Foreclosures, Short Sales

Fannie Mae and Freddie Mac Stop Punishing Buyers

I don't believe it was Fannie and Freddie's intent to "punish buyers", but by requiring higher minimum downs in declining real estate markets when we have to build up our housing market definitely has caused a disadvantage to many.

Fannie Mae and Freddie Mac Cancel Fiver-Percent Down Minimums

Fannie Mae and Freddie Mac have done away with their five-percent down minimums in hundreds of declining real estate markets across the country. As of June 1, Fannie and Freddie will switch to uniform downpayment minimums nationwide. Under Fannie's new policy homebuyers anywhere will now be able to qualify for three percent down loans as long as their application is approved through Fannie's automated system online.

Three-Percent Down Loans are Being Watched Closely.

Some manually underwritten loans may also qualify for three-percent down. Fannie Mae and Freddie Mac will continue to closely review appraisals, local market conditions and a borrowers capability to handle the applied for mortgage. Large groups largely influenced Fannie Mae's and Freddie Mac's decision to change their downpayment policy in declining markets.

The National Association of Realtors among other groups blasted Fannie Mae and Freddie Mac for their policy. They felt it was incredibly unfair to penalize buyers who are still wanting to purchase homes and further punish the buyers by requiring a larger downpayment in a declining area.

This is good news for home buyers wanting to purchase a foreclosure or short sale in an area that may have a larger percentage of foreclosures or distressed properties. First-time buyers, investors and move-up buyers as well are purchasing in all areas.

Great Foreclosures in the Charlotte Area

In the month of May, the Charlotte and surrounding areas had foreclosures priced from $31,500 to over a million dollars with over 6000 square feet with three floors. All buyers considering a purchase should consider viewing at least 2 or 3 foreclosed properties in their price range in Charlotte North Carolina and the surrounding cities.

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