Fannie Mae Mortgages in Florida
If you are in need of a Fannie Mae or Freddie Mac Conventional Mortgage in Florida,
you have come to the right place.
Fannie Mae Mortgage Lender in Florida
Fannie Mae Loans are on the comeback trail !
Boca Raton, West Palm Beach, Boynton Beach, Delray Beach, Wellington have all been some pretty hot markets for real estate during 2013. If your visit my Florida Mortgages page you will see some good price appreciation in all of these places.
In 2014, we should see more Fannie Mae mortgages on the books. The reason I say this is that in many areas of Florida we are seeing more inventory of homes slowly trickle on to the market. Less cash buyers and more people with financing!!!!!!!! That is good for banks and also the average Joe and Betty Homeowners who want to go buy a house.
There was once a time that Fannie Mae Loans seemed to be on the decline. The agency was losing money and our government was talking about phasing them out. Once again they are in the black and once again a conventional Fannie Mae loan is the place to go if someone has a little money to put down and a good credit score. Here is an example.
A 95% Fannie Mae Financing will yield a much lower payment than 96.5% FHA financing. Also with the new rules for FHA, the mortgage insurance will never drop off where the mortgage insurance on a Fannie Mae loan will drop off when the mortgage balance gets to be 78% of the value of the house. (After the mandatory 5 year waiting period.) Please watch the YOUTUBE video below for more details.
Go to my Fannie Mae Mortgage - 95% Financing page to get the math on this.
OLD News 2011 : U.S. House Republicans proposed legislation that would begin reducing the influence of government-run mortgage companies Fannie Mae and Freddie Mac.
The measures would wind down the firms in phases as policy makers work on a broader overhaul of the mortgage market. The proposed legislation would cut the value of the companies’ combined $1.5 trillion loan portfolio, raise the fees they charge to guarantee loans and reduce executive compensation.
This will lead to more privatization of the mortgage markets coming from sources such as hedge funds and insurance companies. Sound familiar? Sounds like sub prime loans all over again. Expect interest rates to climb and also some of the less traditional loan programs coming back such as foreign national loans, private money and yes, even stated loan programs again.
The bills “represent immediate steps that Congress can take to begin building a stable housing finance system based on private capital rather than guarantees provided by the taxpayer,” according to a recent Republican staff memo .
But in the meantime :FHA Loans have been keeping the Housing Market alive- By: Preston Ware 2011-2012
Judging from activity in the South Florida housing Market, FHA is the program that is keeping the housing market alive. Our government announced last month that Fannie Mae and Freddie Mac will be shut down in about seven years. This is quite a gamble and we can only speculate what our housing market will look like by that time.
About a month ago our government announced plans to start winding down Fannie Mae and Freddie Mac. Just about every person you speak with agrees that this is an enormous mistake. Making loans easier to get is what fueled our mortgage frenzy in 2004 thru 2006, and making loans more difficult is one factor that is making our current real estate market more lifeless.
Three proposals have been put on the table by our leaders which leads me to believe our leaders have no plan at all. The authors propose a government re-insurance program to "backstop" private investors. The degree of back stopping is unclear and there needs to be safe guards for maintaining interest rates in the low ranges. If our government is "safeguarding" a private money guy or a hedge fund, those safe guarded rates will be in the 10-15% range. It does us no good what so ever to have a liquid mortgage market at 10-15%.
Stepping back to this decision one has to try to look a little deeper into the changeover plan. FHA has certainly been the astronomical loan program that has kept our housing market together. FHA rates are now better than Fannie and Freddie rates. FHA only requires 3.5% down where Fannie Mae and Freddie Mac usually require 5% or 10% or 20% percent down (to avoid mortgage insurance) depending on your cash to close and what level of PMI you want.
Phasing out Fannie Mae and Freddie Mac would also take away yet another product offered by mortgage brokers who have been steadily thrown under the bus by the guys inn Washington. Guys who paved the way for mortgage brokers to lend money to expand the economy and loved it but know suffer from selective memory as to who created those programs.
The only positive that I can see from forcing Fannie and Freddie to cease to exist will be that it may help the small banks. Small banks can open a niche and start lending again. Small local banks are getting clobbered these days by the third phase of the mortgage meltdown that is going on right now which is the commercial meltdown. Residential loans would create a new vehicle to meet and greet the public and get customers walking in the door again and maybe depositing some money or doing other loans. I recall the early days of my mortgage career, I worked for a local bank "SunBank" now Suntrust that did quite a bit of CRA loans. Community Reinvestment Act loans enabled extremely low income customers to get a 95% mortgage with no mortgage insurance. Underwritten by the banks, backed by a local government programs and serviced by the same lending institution. The bank was able to create a lot of good business and support local communities. (What banks are supposed to do in the long run)