According to the 2014 Profile of Home Buyers and Sellers, published by the National Association of Realtors®, one of the main issues holding back first-time homebuyers is the saving for a down payment. This factor has resulted in a decrease in the number of first-time buyers, to 33 percent of the total housing market, from the high of 50 percent in 2010 when we had the First-Time Homebuyer Tax Credit.
But here’s some good news. A recent announcement from Fannie Mae may address some of this concern. Fannie Mae has reduced the down payment requirement – from 5 percent to 3 percent – as long as one of the buyers is a first-time homebuyer (defined as someone who has not owned a home in the last 3 years).
Consider how this impacts a typical buyer on a $200,000 home purchase. With a 5 percent down payment, the buyer would have…
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