Lamacchia Realty's 2015 Mortgage Review

Finally a year filled mostly with Improvements
There was more positive mortgage changes in 2015 than we have seen in almost a decade. Leading up to 2008, good credit, a job, and a down payment were factors that really were not all that important to mortgage companies and government sponsored enterprises like they are today. The mortgage meltdown and consequential foreclosure crisis, in typical American fashion, caused the pendulum to swing too far back in the opposite direction. Thus, qualifying for a mortgage became much too difficult. This prolonged the recovery of the housing market which really did not begin to take shape until 2012.

Mortgage companies and government sponsored enterprises have begun to loosen qualifying factors for home buyers realizing that they did tighten up the rules more than they should have. There were small continual improvements in 2013 and 2014. Then in late 2014, Fannie Mae and Freddie Mac began offering 3% down mortgages. History will show that 2015 was the year that confidence in the system and real improvements took shape. The naysayers may say “here we go again back to the days of 2004 and 2005 when things got too easy”, but this is simply not the case. Today credit and the actual ability to pay are legitimate factors whereas in the years leading up to the mortgage meltdown they were not. We compiled a list of all the changes across the different agencies, most of which were very positive for the real estate market.

MASS HOUSING
• Operation welcome home was announced in November and supports veterans active duty military in achieving homeownership.
• Veterans and active Duty Members of the Armed Forces, and National Guard can be eligible for an alternative loan program to the VA loan program.
• Benefits include a 0% Down Payment Option and Closing Cost assistance up to 3% of the purchase price.
• Condominiums are not required to go through rigorous VA approval process and follow regular Fannie Mae approval guidelines.
• Non Spouse Co-Borrowers are now allowed to be co-signors.
• Rental income is allowable for 2-Family Home purchases.

For more, including Fannie Mae, Freddie Mac and FHA changes, visit the full blog post here!