Fannie and Freddie have a mandate to loosen up the industry, and "Mel Watt wants to see the millennials enter the market. They've seen their parents and older relatives going through 2008, and owning a home isn't the American dream. The stigma of renting doesn't exist anymore, especially in a city."
Mortgages will be available as 15-, 20- or 30-year fixed-rate loans. The borrowing limit is $417,000.
Say you want a $300,000 home loan. Under the old rules, Fannie Mae required 5 percent down, or $15,000. Now, theoretically, a first-time buyer can get qualified for $9,000.
But for prospective homeowners, there is this question: If you don't have $15,000 available, should you really be buying a house?
Why does mell watt not want people to rent? Because renting peoples do not invest in their homes, thus they do not stimulate the economy.
A renting nation has less need to fix anything. They rent and buy food. If they have anything left they buy gadgets. Renters do not fix the furnace or replace it or new roof or upgrade the kitchen.
The US govt needs people buying houses so that inflation stays above 2%, otherwise its the end of the dollar if deflation becomes the norm.
Economies must have inflation to not collapse. Its basic economics.
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