Fewer Borrowers Relying on High LTV Loans

By Jann Swanson

Posted To: MND NewsWire

Just as the government sponsored enterprises Fannie Mae and Freddie Mac are launching new 97 percent conventional loans, RealtyTrac is announcing that demand for such low downpayment loans has never been…lower. A recently completed study by the company looked at 20 million purchase mortgages for single family homes and condos originated between 2004 and 2014 and found the share of buyers putting down 3 percent or less hit its lowest point in 2014. Of course this may not be a factor of demand, RealtyTrac did not venture into that area. More likely it is the result of stricter underwriting standards, perhaps for private mortgage insurance as well as the loans themselves. Nonetheless, 25 percent of buyers taking either conventional or FHA loans in 2014 put down less than 3 percent for a home…(read more)

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