Nashville Real Estate | Freddie Mac Requires 5% Down Payment

In order to support responsible lending and sustainable homeownership, Freddie Mac has decided that they will no longer purchase mortgages with less than 5% Down Payment.  This new change goes into effect for all homes closed on or after June 1, 2011 and was released in a bulletin to lenders last week.  Freddie Mac also stated that the recent performance of mortgages of less than 5% have been unacceptable.  The new rule is in effect for all conventional mortgages that are purchased by Freddie Mac, except the Relief Refinance Mortgages Program. 

The Relief Refinance Mortgage Program is Freddie Mac's response to HARP (Home Affordable Refinance Program) and offers mortgages that better positions the homeowner for success.   You have the ability to refinance your mortgage with your current lender or another qualified lender in this refinance program.   The Relief Refinance Mortgage is intended to help borrowers who are current on their mortgage payments and have been unable to refinance because of declining property values.  According to Freddie Mac's Primary Mortgage Market Survey, 30 year fixed mortgages are averaging 4.87% with 0.7 points and the 15 year fixed mortgages are averaging 4.15% with 0.7 points.  These averages are for conforming mortgages with 20% down.

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