A new down payment program by Freddie Mac, [1] the efforts of the Government Sponsored Enterprises (GSEs), especially Fannie Mae [2], on making financing for condos easier, and how virtual e-closing expanding across the country are some of the latest trends that are shaping the housing market this month.
Matt Ishbia, President, and CEO of United Wholesale Mortgage [3] (UWM) gives an industry view on these trends and how they're likely to impact the housing market in the near term. In this video, Ishbia points to the Freddie Mac Home One program that's launching on July 29. This is a 3 percent down conventional program for homebuyers regardless of income and geography, according to Ishbia and though it is a bit more expensive than a similar program by Fannie Mae, it's still a "better option than FHA."
He also gives an update on condos and the announcements by the GSEs as well as FHA on making the financing process for these properties easier and more accessible. Some of the changes include Fannie and Freddie's initiatives to treat detached condos as SFR as well as FHA's list of approved condos. "Condos are going to become easier for all of us in the industry," said Ishbia.
Additionally, e-closing has now extended to 20 states across the country including the District of Columbia. According to Ishbia, "e-closing has really grown right now and is expected to expand."