Freddie Mac’s underwriting also allows self-employed buyers to submit tax returns for one year only, instead of the customary two years’ tax returns. I’m not sure if they will do that on this new program?
It’s been more than three years since Freddie Mac rolled out a conventional mortgage that only required a 3% down payment for certain borrowers.
But now, Freddie Mac is about to supercharge its 3% down program and launch a widespread expansion of the offering.
Freddie Mac announced Thursday that it is rolling out a new conventional 3% down payment option for qualified first-time homebuyers. What makes this program different is that there are no geographic or income restrictions.
The new program, which is called HomeOne, puts Freddie Mac in direct competition for mortgage business with the Federal Housing Administration, which also only requires 3% down on some mortgages.
According to Freddie Mac, this new offering is not replacing its Home Possible 3% down mortgages. Rather, the program is meant to complement the Home Possible program, which will still be available to low-and moderate-income borrowers.
Freddie Mac said that the new mortgage is designed for first-time homebuyers, who currently make up nearly half of all home purchases.
According to Freddie Mac, a HomeOne mortgage must be underwritten through its Loan Product Advisor, which makes a complete risk assessment based on several factors as it relates to credit, capacity and collateral.
Additionally, the HomeOne mortgage is offered only for conforming fixed-rate mortgages that are secured by a 1-unit primary residence. And, at least one of the borrowers must be a first-time homebuyer.
When all the borrowers are first-time homebuyers, at least one borrower must participate in homeownership education in order to qualify for the mortgage.
The loan can also be used for single-family homes, condos, and townhouses. Manufactured homes are not eligible.
“Freddie Mac’s HomeOne mortgage is part of the company’s ongoing efforts to support responsible lending, provide sustainable homeownership and improve access to credit,” Danny Gardner, senior vice president of single-family affordable lending and access to credit at Freddie Mac, said in a statement.
The HomeOne mortgage will provide our customers the flexibility they need to help borrowers anywhere in the country achieve the milestone of homeownership and overcome the common down payment resource hurdle,” Gardner continued. “HomeOne is a great solution for aspiring homebuyers to grab that first rung of the property ladder and enjoy the financial and social benefits of participating in homeownership.”
In conjunction with making the HomeOne announcement and due to HomeOne’s ability to increase access to credit for first-time buyers, Freddie Mac said that it will be making some changes to the Home Possible program in order to “sharpen its focus” on low-and moderate-income borrowers.
Specifically, Home Possible income limits will be capped at 100% of area median income for properties in designated high-cost areas, designated disaster areas and minority census tracts, except for low-income census tracks, which will continue to have no limits.
According to Freddie Mac, the new HomeOne mortgage will be available beginning July 29, 2018. The income changes for Home Possible will go into effect on the same day.
For much more, check out these materials from Freddie Mac on the program.
Link to Article
“Specifically, Home Possible income limits will be capped at 100% of area median income for properties in designated high-cost areas,”
It looks like the “Area Median Income” for San Diego is 63,400 a year. So this disqualifies anyone trying to buy anything in North County or Maybe San Diego county. I might be interpreting that incorrectly. Is the income cap $64,300 or double that (100%).
Either way that seems to disqualify most of north county Single Family units.
If you can only put 3% down on a house you should not be buying. This type of behavior is what lead to the 08 crisis.
“Specifically, Home Possible income limits will be capped at 100% of area median income for properties in designated high-cost areas,”
They didn’t do a good job explaining the differences, and the program names are similar though the terms vary.
HomeOne is the new program, and it has no income restrictions. The catch is that all borrowers must occupy the home as their primary residence, but only one needs a ‘usable credit score’. These will be good for condos that aren’t FHA/VA approved.
We’ve seen this before. People cannot afford houses. Change the rules and declare victory.
Comerica reports the elephant in the room.
The ratio of total homes for sale per household this spring is the lowest it has been since the NAR data on existing home sales began in 1999.
They should be handing out housing for free before too long?
Tenants rights advocates say such displacements possibly could be deterred by a lesser known component of rent control laws being proposed up and down the state: just cause evictions.
Under California’s “no-fault” move-out law, landlords can end a renter’s tenancy for any reason — or no reason at all — merely by issuing a move-out notice 30 to 60 days in advance.
Just cause eviction ordinances, however, require landlords meet one of about a dozen reasons before doing so, ranging from not paying the rent to damaging property, creating a nuisance or illegal activity.
Landlords also could order tenants in good standing to move out under just cause provisions if they plan to occupy the unit themselves, take the property off the rental market or substantially renovate. But they must provide relocation assistance in such cases.
Seventeen California cities have just cause eviction ordinances, according to the California Apartment Association. Four of them — Glendale, Maywood, San Diego and Alameda — have just cause eviction laws without rent control.
Petitions are circulating in seven California cities — including Long Beach, Pasadena, Inglewood and Glendale — to put rent control and just cause eviction initiatives on the November 2018 ballot (or in Glendale’s case, rent control and tougher just cause provisions). A coalition of citizen groups filed paperwork on April 3 seeking to launch a similar petition drive in Santa Ana, and Los Angeles County is studying just cause evictions and other options to protect tenants.
Advocates say such laws are needed to give tenants stability and protect them against arbitrary move-out notices.
Gentrification and an increase in renters are driving vacancies to near-record lows. Meanwhile, escalating real estate prices are pricing aspiring homebuyers out of the housing market. That leaves fewer options for low-income renters in older, more affordable buildings that are being sold and renovated.
The region doesn’t have just a housing crisis, said Walt Senterfitt, a founding member and organizer at the Los Angeles Tenants Union.
“We have a displacement crisis,” he said. “(And) anything that can help people stay in their homes is a response to the crisis — particularly for low-income people.”
https://www.ocregister.com/2018/04/27/as-call-for-rent-control-rises-some-provisions-raise-concern-among-landlords/
H/T daytrip!
“We have a displacement crisis,” he said. “(And) anything that can help people stay in their homes is a response to the crisis — particularly for low-income people.”
My unvarnished response… it’s not your home, it’s a rental. As a landlord, you are not my business partner. When I sell the property, you get nothing. You also don’t pay for upkeep. You don’t pay the 40K for the new roof. You don’t pay the 35K for the emergency sewage pipe installation. You don’t have to hassle with gardeners.Relatively, ou don’t have to do squat, except not be a jerk, and that’s too much to ask of many of you. Much like a leased car is not your car. You screw it up, you can walk away. The guy who leased you the car has to deal with it. You pay me to take on the risk, pain and suffering you don’t have to even be aware of.
So knock off the Walton’s Mountain crap. John Boy’s ass was up at 5 in the morning running logs through a band saw, to sell for 5 bucks to buy shingles for their roof so grandma wouldn’t get rained on again. You don’t know that world. You don’t know “home.” Because you can walk away.
A home is a nest egg. A rental is not is not a nest egg. You rude renters, with your “rent control” malarky are not allowed to use the words “nest,” “egg,’ or “home!” Instead of saying “I’m going home,” you are to say, “I’m going shlengy.” Do not say home.
I mean it. Look at my emoji! Look at it!! >:^/
https://www.youtube.com/watch?v=xdMilnKGJdA
“If you can only put 3% down on a house you should not be buying. This type of behavior is what lead to the 08 crisis.”
Bull$hit. Any veteran can get a zero-down mortgage. I’ve bought several houses with zero-down VA mortgages. VA loans have very low foreclosure rates:
https://www.military.com/money/va-loans/home-purchase/va-loans-have-lowest-foreclosure-rate.html
The biggest cause of the ’08 crisis was the subprime loans. Credit score is probably the best single indicator of loan repayment.