Fannie Mae’s New Homebuying Initiative

 

Some homebuyers may be able to take advantage and save some money on their new purchase this year. Fannie Mae is launching a $2,500 homebuying credit to help make homeownership more accessible. This initiative can help homebuyers with their down payment and closing costs, potentially saving them thousands of dollars.

Fannie Mae states, “With a low down payment and expanded financing flexibility, the credit is issued through HomeReady®, whether you are a first-time homebuyer or a repeat buyer.”

The HomeReady credit will be effective for whole loans purchased on or after March 1st, 2024 through February 28th, 2025 and for loans delivered into mortgage-backed securities (MBS), this is effective on or after March 1st, 2024 to February 1st, 2025. This opportunity is available to homebuyers who earn at or below 50% of their area median income area.

According to Sonu Mittal, SVP and head of single-family acquisitions at Freddie Mac, “Today’s announcement is a vital lifeline for would-be homeowners, as studies show that down payment and closing costs are among the largest barriers to homeownership for very low-income homebuyers.” Connie Kim, author of Housing Wire, mentioned, “In 2023, Freddie Mac helped finance about 800,000 home purchases, with first-time homebuyers representing about 51% of these loans.” This is part of the government-sponsored enterprise’s efforts to make homeownership more attainable. 

In today’s market, this tool marks a hugely significant effort to help those needing an opportunity to secure their home. Each step marks a deeper look, providing ways to help move the real estate industry forward. This initiative is aimed at helping those through difficult situations and guiding them through challenges. Fannie Mae also has a look-up tool to determine eligibility. Homebuyers should seek advice from mortgage professionals before starting the pre-approval process.

The HomeReady mortgage product gives homebuyers more options while offering potential solutions for those looking to purchase their first home and even those returning to the market. The credit can be applied towards down payments and closing costs. 

By BeachesMLS Staff
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Samantha MinnsCommunity