Tags: freddie | mac | no | down | payment | mortgages

Freddie Mac Promoting 'No Down' Mortgages

Thursday, 05 Aug 2010 01:00 PM

Despite the housing bust that led to all the current foreclosures, Freddie Mac (and hence the government) is still touting no-down payment mortgages.

"For many individuals, now is a great time to buy a home: mortgage rates are low and house prices are lower than they've been in years," the GSE says on its website. "But gathering enough funds for the down payment, fees, and closing costs is a challenge for some families," it reads.

"That isn't necessarily a deal-breaker, however, because if you've done
your homework, and are financially ready to be a homeowner, you may be
eligible for down payment assistance."

Help is available through grants and tax credits, the website goes on to explain.

“Each program has different requirements, and help may be limited to first-time homebuyers and or low- and moderate-income homebuyers,” Freddie says.

“Assistance can range from a few thousand dollars to larger amounts, depending on your needs, your qualifications, and where you choose to purchase your home.”

To its credit, Freddie Mac also recommends that potential homebuyers take a homebuyer class or workshop to learn whether they can afford a mortgage payment, home maintenance and repair costs and other homeowner-related topics.

Though banks are finding buyers for bad loans in a market that is slowly coming to life, real-world prices can raise questions about the values banks have assumed for their stressed assets, The Wall Street Journal reports, because banks' balance sheets suggest some reserves and write-downs may not be adequate.

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Despite the housing bust that led to all the current foreclosures, Freddie Mac (and hence the government) is still touting no-down payment mortgages. For many individuals, now is a great time to buy a home: mortgage rates are low and house prices are lower than they've...
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2010-00-05
Thursday, 05 Aug 2010 01:00 PM
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