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  • Casual Articles - Texas Fannie Mae HomeStay Initiative Information

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    hed credit. One example is Fannies HomeStay initiative. The main feature of the HomeStay initiative is the Expanded Approval program. Customers with less than perfect credit can often get approved on the Fan
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    The recent problems in the sub-prime mortgage industry are resulting in changes to the housing marketplace. Sub-prime lenders have previously been aggressive in buying less than perfect credit mortgages as home prices were rising. (Rising home prices help protect the lender if the buyer defaults). A recent wave of foreclosures in sub prime and a cooling home market has put many of these companies out of business. Others that remain have significantly tightened credit and down payment requirements. These changes are resulting in an increased use of some more traditional alternatives.

    Before the surge in sub prime lending the primary source of mortgages for people with credit problems was FHA, Fannie Mae, and Freddie Mac programs. Fannie and Freddie have loan programs designed specifically for consumers with blemished credit. One example is Fannies HomeStay initiative. The main feature of the HomeStay initiative is the Expanded Approval program. Customers with less than perfect credit can often get approved on the Fann

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    ome prices were rising. (Rising home prices help protect the lender if the buyer defaults). A recent wave of foreclosures in sub prime and a cooling home market has put many of these companies out of business. Others that remain have significantly tightened credit and down payment requirements. These changes are resulting in an increased use of some more traditional alternatives.

    Before the surge in sub prime lending the primary source of mortgages for people with credit problems was FHA, Fannie Mae, and Freddie Mac programs. Fannie and Freddie have loan programs designed specifically for consumers with blemished credit. One example is Fannies HomeStay initiative. The main feature of the HomeStay initiative is the Expanded Approval program. Customers with less than perfect credit can often get approved on the Fan

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    . Others that remain have significantly tightened credit and down payment requirements. These changes are resulting in an increased use of some more traditional alternatives.

    Before the surge in sub prime lending the primary source of mortgages for people with credit problems was FHA, Fannie Mae, and Freddie Mac programs. Fannie and Freddie have loan programs designed specifically for consumers with blemished credit. One example is Fannies HomeStay initiative. The main feature of the HomeStay initiative is the Expanded Approval program. Customers with less than perfect credit can often get approved on the Fan

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    ime lending the primary source of mortgages for people with credit problems was FHA, Fannie Mae, and Freddie Mac programs. Fannie and Freddie have loan programs designed specifically for consumers with blemished credit. One example is Fannies HomeStay initiative. The main feature of the HomeStay initiative is the Expanded Approval program. Customers with less than perfect credit can often get approved on the Fan
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    hed credit. One example is Fannies HomeStay initiative. The main feature of the HomeStay initiative is the Expanded Approval program. Customers with less than perfect credit can often get approved on the Fannie Mae Expanded Approval (EA) program. The finance rate is usually several percent lower than a sub prime loan.

    The Expanded Approval program can also be used to refinance out of a high rate loan and get lower payments. The vast majority of current homeowners with sub prime mortgages will qualify for an EA mortgage if their last 12-month mortgage payment record is clean. Fixed rate terms are available to eliminate the problems associated with adjustable rate loans. I would advise anyone with a high rate mortgage to see if this program, or a similar FHA or Freddie Mac plan, can save them money!

    This HoneStay program may not be right for all consumers. If you have a current mortgage with multiple payments 30 days late in the last year you probably won't qualify for a refinance. Fannie Mae programs are also fa

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