There’s been a lot in the news recently about the government takeover of government-sponsored enterprises Fannie Mae and Freddie Mac. But what does that mean for the Dallas real estate market?

These agencies guarantee more than 40 percent of the nation’s mortgages and own or guarantee more than $5 trillion worth of mortgages, so assuring their continued operation is crucial in the current economic environment. 

The government’s actions aimed to restore confidence and bring stability and continued liquidity to the nation’s mortgage market. Interest rates came down immediately after the takeover, and it’s likely that this will keep them low for some time to come. 

Buyers benefit from lower rates, and sellers benefit from the increased demand created by buyers entering the market.

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Fannie Mae has lowered down payment requirements on Dallas real estate loans from 5% to just 3% for all conventional, conforming mortgages processed through its Desktop Underwriter® automated underwriting system. Loans processed outside the Desktop Underwriter® system will still require a 5% down payment. The lower down payment requirements went into effect June 1 and are a real boom for Dallas real estate buyers.

Part of its “Keys To Recovery” campaign, this initiative will apply to homebuyers all across the country, regardless of local market conditions. Since the biggest obstacle for many first-time home buyers is saving up enough money for a down payment, this is great news if you want to take advantage of the current Dallas real estate market!

Read the full article here, and please email me or call me at 972-562-0896 if you need a referral to a reputable local lender! To learn more about Dallas real estate, please visit TexasHomeCentral.com, or let me know what you’re looking for and I will find you the perfect home!

On March 12th Fannie Mae announced further loan level pricing adjustments ON TOP OF the loan level price adjustments that went into effect on March 1st of this year. Basically, the new LLPA’s mean that, if your credit score is below 720, you are going to be paying a higher rate than if your credit score is over 720.

Listen, I don’t claim to be a smart man but this new stuff WILL NOT FIX OUR PROBLEMS! This is a total overcorrection of the floodgate lending that has been going on the past few years. Our goal should be to put GOOD credit borrowers into the glut of houses that are available. We don’t want to make it TOO easy but for goodness sakes we don’t want to make it overly restrictive either! We need to stop trying to nickel and dime good borrowers. If you would have told me that I would have a hard time with a 700+ borrower putting money down and fully documenting his income I would have told you that you were crazy but that is what I see happening.

My only hope is that these new restrictions, along with the new guidelines for Mortgage Insurance, don’t squeeze an already slow market even further.

Craig Pollard is a mortgage professional and owner of Texas Mortgage Team. He specializes in the Dallas Fort Worth area and is a frequent voice on Texas Home Central’s blog. Craig can be reached at 972-317-9900 or emailed by clicking here.