January 23rd, 2008, posted by Rob
Fannie Mae and Freddie Mac say “No more 100 percent financing products on our backs in declining market areas!”
Many lenders, including Fannie Mae and Freddie Mac, are implementing declining markets policies. This is in response to the current turmoil in the housing market. Some parts of the DC metro area are affected, but many are not — particularly neighborhoods inside the beltway. These new guidelines mean the maximum amount you borrow may be reduced by 5%.
If you’re looking for a home, consult with your lender to see if you’re affected. Your lender can tell you whether the property you are interested in is affected by these new policies.
Washington Home Mortgage