In recent news the announcement has been made that the Feds are taking over Fannie Mae and Freddie Mac. The markets reacted quickly and decisively to the news with rates dropping by 1/2%. For those buyers who were looking for a good reason to get off the fence and buy now, this could be it. Below are a few articles related to the takeover that are worth reading.
‘Frannie’ Bailout Makes Money Cheaper, Not Easier
Of particular note in this article, is the author’s belief that Fannie and Freddie will no longer guaranty Alt-A loans after the beginning of the year. This means that Stated Income loans will be much harder to find.
So, on the one hand, money becomes cheaper but it will also be much harder to get. For self-employed people who do everything possible to pay as little income taxes as possible, this is not going to be welcome news should it come to pass.
Fed Move on Fannie, Freddie is ‘Good News’
We couldn’t agree more with this article. Although it may be another taxpayer bailout, it was necessary to insure the stability of the real estate industry. As the article suggests, the government and thus taxpayers may actually make money by going down this road.
We certainly hope so, but we are not holding our breath on that score. In any event, it is great news for the real estate market, and should give a much needed shot in the arm to our market.
If you would like to get pre-approved for a loan, please let us know and we will put you in touch with one of the top lenders in Incline Village.
Have a wonderful week.
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