Some changes have come into effect for 2015 that might make home buying easier in the Phoenix area. Earlier this year Fannie and Freddy changed their guidelines that almost all lenders use. Which is, they allow Gift Money from a family member to be used up to 100 percent of the down payment. So, for many Firsttime Homebuyers they might have a family member that’s willing to help.

In the past, first-time home-buyers had to have a certain percent of their own cash, even with the gift money, but now it can be up to 100 percent of the down payment. On December 15th, Fannie and Freddy also changed their guidelines as well to allow three percent down payment instead of five percent. Meaning, firsttime homebuyers that have been saving up cash, can now get into the market at an earlier stage while housing values are still more affordable than they’re going to be.

Freddie and Fanny are stepping up to help keep the momentum moving in the housing sector, making it easier for the 2015 year.

If you are a Phoenix first-time home-buyer or looking to buy a new home, United Mortgage Financial Group, Inc. can be reached at (480) 503-3533 or at our website.

Transcript:

Matt O’Brien:  Well, welcome to another segment of Arizona Mortgage News. We’re here with our resident expert, Mike Goblet, of United Mortgage and Financial Group. Today we have a topic on a couple men’s names. Actually, a man and a woman, Fannie and Freddy. You say there’s some changes that are going on that might make home buying easier. I’m interested to hear that.

Mike Goblet:  Yeah. Actually, I think this is an opportunity that will help many get into homes that might have had difficulty in the past and changes that they’ve made. One was a little bit earlier this year that Fannie and Freddy made to their guidelines that almost all lenders use, and that is they allow gift money from a family member to be used up to 100 percent of the down payment.

So, for many, particularly firsttime homebuyers in many cases, they might have a family member that’s willing to help. In the past, they had to have a certain percent of their own cash, even with the gift money, but now it can be up to 100 percent of the down payment.

Matt:  I remember that one.

Mike:  Yeah, that came out this summer. But just recently as a matter of fact, effective December 15th, they’ve changed their guidelines again as well to allowing three percent down payment instead of five percent.

So, again, this can help many, particularly firsttime homebuyers that have been saving up cash, thought they had to save thousands more before they could enter the market, get into the market at an earlier stage while housing values are still more affordable than they’re going to be.

Matt:  Very nice.

Mike:  So I think this will really help for 2015. Now, there are some out there, some people, that are saying, well, these new guidelines are going to put us right into our same old ballpark. Are we going to see more foreclosures now because of less down payment and being able to be gifted the money? But I think the market has changed in such a way that that’s not more likely at this case.

Put into effect at the start was what they call ATR or ability to repay that every lender must assure the investors, so that’s why the scrutiny for home buying has gotten tougher. The underwriting guidelines is to make sure they still qualify for the ability to repay the loan. That’s all still in effect.

Matt:  They got our back.

Mike:  They have our back a little bit. It does stop part of the old problem was if you just had a good credit score, you could use stated income, stated assets. That’s not part of it. All the guidelines, the debt ratios and everything else are still in effect.

Matt:  Very nice. Well, Freddie and Fanny making it easier for the 2015 year.

Mike:  Well, they’re stepping up to help the housing market, which has slowed down a little bit and that’s one of the reasons that they have made these changes, to help keep the momentum moving in the housing sector.

Matt:  And keep us all feeling confident, right?

Mike:  Well, we’re going into a new year shortly, so it’s good to have some confidence.

Matt:  Big time. Well, very good, Mike. So people with questions on just about anything, how can they get in touch with you?

Mike:  Well, I can be reached at our office at United Mortgage Financial Group, Inc. The phone number here is 4805033533. Call me on my cell as well at 4802202329 or email me at mike.goblet at our company initials umfginc.com.

Matt:  Excellent. Well, we going to talk to you. You have your cell phone. Merry Christmas.

Mike:  You, too. I appreciate it, Matt. Merry Christmas. Happy New Year. Happy holidays to everybody who is watching, and I wish everybody a great and wonderful New Year.

Matt:  All right. Thanks, Mike.

Mike:  OK, have a good day.

Matt:  You, too.

Mike:  Bye.