Affordable Advantage, and it allows first-time home buyers in four states (Massachusetts, Minnesota, Idaho and Wisconsin) – paying just 67 cents for a $115,000 home.
“Earlier this week the Federal Housing Authority implemented a new program called the Short Refi. At around the same time this program went into effect, the New York Times did a piece on a small program Fannie Mae is implementing through state housing finance agencies. It’s called Affordable Advantage, and it allows first-time home buyers in four states (Massachusetts, Minnesota, Idaho and Wisconsin) to get essentially no-money-down loans that are then sold to Fannie Mae.
It requires $1000.00 down, but the couple profiled in the piece received a grant, and ended up paying just 67 cents for a $115,000 home. The Fannie Mae program requires a minimum credit score of 680 (720 in Massachusetts) and the buyer must live in the home.
All loans are 30-year fixed. The arguments for the program are persuasive: It wasn’t the no-money-down loans themselves that fueled the housing crash, it was the poor underwriting. These loans are very strictly underwritten. Adjustable rate loans were the primary drivers of default, while these loans are fixed. But what about borrowers having some skin in the game? The government is trying to stem the tide of mortgage walkaways by creating programs that force lenders to give borrowers back home equity — and despite the small credit hit to the borrower, that’s free equity. The Fannie Mae program, while helpful in getting new buyers into homes and easing some inventory, seems contradictory in its fundamental premise.
The buyers in the Affordable Advantage program have no skin in the game from the start, and no guarantee that the home won’t lose value over the next year. Proponents argue that the state agencies funding the loans initially are working very closely with the borrowers, counseling them and doing all they can to keep them out of foreclosure.
I’ll show you how to short sale your property and never pay the bank another penny.
Send me an e-mail at email@example.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (770) 866-2561.
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Thanks for reading this, Roland Lorans.
Roland is a Real Estate Agent at Better Home and Gardens Real Estate Metro Brokers .
Phone: (770) 866-2561 or 404-843-2500 firstname.lastname@example.org.
Roland Lorans specializes in loan modification assistance and short sales in Dacula, Buford, Suwanee, Alpharetta and Metro Atlanta Georgia
- The Return of No-Money Down (theatlantic.com)
- Fannie Mae’s ‘Affordable Advantage’ Program Offers Mortgages For Only $1,000 Down (huffingtonpost.com)
- Mortgages With No Money Down Make a Return (nytimes.com)
- Freddie Mac, FHLB, Fannie Mae 2010 note calendar (reuters.com)
- Family Buys House With A $0.67 Down-Payment (businessinsider.com)