Getting a Mortgage through Fannie Mae (NASDAQOTCBB:FNMA) Not a Problem for Americans Anymore

We all know how hard is it to get a mortgage, especially if you’re low on credit. This month brought good news for those people who were looking forward to obtain a mortgage without any hassle. The new guidelines from Fannie Mae (NASDAQOTCBB:FNMA) and Freddie Mac (NASDAQOTCBB:FMCC) will enable American citizens to get their mortgages even if they’ve got low credit. According to these new guidelines, the down payment requirement will also wane down.

Since the financial crisis, it has been quite difficult for American citizens to get a mortgage but not anymore. In the past, if anyone required a mortgage, he/she had to have an excellent credit. If not that they would have to get a heavy loan with interest. In the end it turned out to be a mess for the person or the family. In order to get a loan, the average score one needed was 754 credits. It was lower than 764 credits which was the required score in 2012.

People were getting rejected at 723. The point we are trying to illustrate is that it was really hard for anyone to get a mortgage without taking a leap of faith. Banks haven’t been quite open to people after the financial crisis. The meltdown took a toll on everyone; especially the banks and they became wary to save their money from getting into the wrong or rather ‘unproductive’ hands. The new guidelines from Fannie Mae (NASDAQOTCBB:FNMA) and Freddie Mac (NASDAQOTCBB:FMCC) are quite clear as to when can the bank give you a loan and when it can reject it and on what grounds.

This will definitely hash out the people who actually require a loan and will be able to pay it than those that are out there to bungle the cash. According to the new guidelines set by Fannie Mae (NASDAQOTCBB:FNMA) and Freddie Mac (NASDAQOTCBB:FMCC), the minimum credit score is set at 620 and minimum down payment is 5 percent, which can be lowered down to 3 percent. There’s a catch to these guidelines.

Anyone with a score of 620 credits can get a loan easily but will have to face higher interest rates. The buyers who have low down payments will be looking at higher premiums of mortgage insurance. These guidelines will bring a hike in the loans taken per year, a hike of 1.2 million loans per year to be precise. Some mortgages will be for existing homes, while other for completely new constructions. This is good news for the buyers and homeowners because the buyers will find it easier to get a mortgage and the owners will find it easier to sell their house with a 20 percent hike in prospective buyers.

The lenders will feel safe about their money because there are set guidelines now. It’s an important step in the housing recovery and the fact that market activity will increase; all in all it’s good for the country’s economy and for the Americans that are planning families. Fannie Mae (NASDAQOTCBB:FNMA) and Freddie Mac (NASDAQOTCBB:FMCC) has made the whole operation fair and convenient.