According to a recent article in the Wall Street Journal, many mortgage lenders are preparing to ease their standards for borrowers after the release of new guidelines from Fannie Mae and Freddie Mac.
This will give thousands of potential new borrowers access to mortgage loans. The mortgage industry can expect to see faster turnarounds for processing mortgage applications as well as lower credit requirements and greater flexibility.
By offering down payment opportunities as low as 3%, Freddie & Fannie will make it easier for many First Time Home Buyers to qualify for a mortgage.
With mortgage rates still hovering near record lows and home prices still off about 15% compared to the housing boom peak, many experts felt that overly strict lending standards were keeping First Time Home Buyers out of the market. With the new guidelines in place it is important to make these potential home buyers aware of these new opportunities.
According to a Zillow survey released in October, 83% of young renters ages 23 to 34 who responded said that they expect to buy a home someday.
According to the National Association of Realtors, the average age of a first-time home buyer is 31, with an average income of $61,800, and about 55% of them being married.
Smart Mortgage and Real Estate Marketers should be mailing to the First Time Home Buyer list now before this opportunity passes them by.