‘Shared-equity’ program could boost homeownership by helping buyers over down payment hurdle
December 15, 2016
New down payment assistance is putting homeownership within reach of more consumers and boosting the buying power of others, sometimes by hundreds of thousands of dollars.
Federal mortgage guarantor Freddie Mac is piloting a groundbreaking program that lets homebuyers get half of a 20 percent down payment covered by a financial firm in exchange for home equity. The down payment assistance comes from Unison Home Ownership Investors (formerly First Rex) — a San Francisco-based firm that invests in homes alongside buyers and lets homeowners sell home equity for cash. If Freddie Mac expands the experiment, mortgages with investor-supported down payments could be available for more widespread use.
Read more on this development on Inman. Written by Teke Wiggin.
You might also like…
Slow and Competitive Market Conditions Likely to Continue in Virginia
By Virginia REALTORS® - September 29, 2023
According to the August 2023 Virginia Home Sales Report, there were 9,456 sales in Virginia’s housing market. This is 2,237 fewer sales than last August, reflecting a 19.1%… Read More
Is Rent Still a Cost Burden to People Living in the U.S.?
By Abel Opoku-Adjei - September 13, 2023
The cost of living in the United States has been growing at a rate that many people struggle to keep up with, especially regarding rent. What is causing… Read More
Mortgage Rate Lock-in Effect in Virginia
By Virginia REALTORS® - September 12, 2023
Most recent articles about the housing market discuss the “mortgage rate lock-in effect.” But what does mortgage rate lock-in mean, really? In the period of low interest rates… Read More