RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Fannie Mae and Freddie Mac Swim Against the Tide with 3 Percent-Down Loans

Home News
December 20, 2014
Reading Time: 2 mins read
5
Fannie Mae and Freddie Mac Swim Against the Tide with 3 Percent-Down Loans

fishRecently, Fannie Mae and Freddie Mac announced plans to begin backing home loans with down payments as low as three percent. This move came just days after the mortgage giants implemented less rigid lending standards in order to give Main Street citizens with less-than-perfect credit a better chance at homeownership. According to The Association of Mortgage Professionals (NAMB), it seems the lending industry is opening its arms to the millennial generation, too many of whom have yet to own their first home.

The new programs – Freddie Mac’s Home Possible Advantage and Fannie Mae’s as yet unnamed – are tailored to first-time homebuyers and low- and moderate-income individuals who finance a fixed-rate mortgage. In these cases, they may be approved for a loan without the capital required to make the traditional five percent down payment. In exchange for the lower down payment, the applicants must be able to demonstrate their ability to repay their loan, secure mortgage insurance, and attend pre-purchase counseling.

According to Don Frommeyer, CEO of NAMB, the lower down payment requirements should help drive millennials into their first homes.

“I applauded Fannie and Freddie for loosening the lending standards this month,” says Frommeyer. “This is exactly what our industry needed to propel millennials into homeownership for the first time and to keep Main Street growing and thriving.”

Frommeyer is a big fan of the required loan counseling, as it extends well beyond the scope of educating first-time homeowners what it means to be responsible for a mortgage. Those who attend can expect to learn, among other things, the financial impact of variables such as property taxes, insurance, and upkeep associated with homeownership.

“When you purchase your first home, sure it’s important to understand the terms and your ability to make the monthly payments,” says Frommeyer. “But there are countless factors that young people forget to consider. You need to buy a lawn mower, and bags, and a snow shovel, and a hose. You’re no longer responsible for just the inside of an apartment. And this loan counseling prepares people to look at the bigger picture. I’ve seen people walk away from these seminars with a whole new outlook. It’s really good stuff.”

For more information, visit www.namb.org.

ShareTweetShare

Related Posts

Beyond Commissions: How Two Leading Brokerage Firms Are Redefining Agent Compensation
Agents

Beyond Commissions: How Two Leading Brokerage Firms Are Redefining Agent Compensation

October 3, 2025
zillow
Agents

Zillow Seeks to Scrutinize Anywhere-Compass Deal for Inconsistencies With Lawsuit Claims

October 3, 2025
Consolidation
Agents

The Consolidation Trend: A Look at the How, Why and Outcomes

October 2, 2025
Forbes Global Properties Welcomes Rhode Island’s Flagship Real Estate Advisors to its Network
Industry News

Forbes Global Properties Welcomes Rhode Island’s Flagship Real Estate Advisors to its Network

October 2, 2025
Final Offer Launches in Denver and the Front Range in Partnership With Several Colorado Brokerages
Industry News

Final Offer Launches in Denver and the Front Range in Partnership With Several Colorado Brokerages

October 3, 2025
Lone Wolf Technologies Expands Partnership with the California Association of Realtors®
Industry News

Lone Wolf Technologies Expands Partnership with the California Association of Realtors®

October 3, 2025
Please login to join discussion
Tip of the Day

Stop Relying on “I Tried”

Most people don’t fail because they’re untalented—they fail because they settle. If you’ve been in a rut, this might be for you. Learn more.

Business Tip of the Day provided by

Recent Posts

  • Beyond Commissions: How Two Leading Brokerage Firms Are Redefining Agent Compensation
  • Zillow Seeks to Scrutinize Anywhere-Compass Deal for Inconsistencies With Lawsuit Claims
  • The Consolidation Trend: A Look at the How, Why and Outcomes

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2025 Newsmakers
    • 2024 Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2025 Power Broker
    • 2024 Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X