Brena Swanson of Housing Wire writes the program was launched in order to attempt to open the credit box for borrowers wanting to jump into the housing market. It faced difficulties due to lender fears and borrower misconceptions.
As far as homebuyer misconceptions, Danny Gardner, Freddie Mac vice president, said in a post, “What will it take to green up this year's spring home-buying season with first-time buyers? Information is part of the answer. As an industry, we have to drive a stake through a few stubborn myths that are draining life out of the market.”
One of the most common ones that Gardner mentions is that buyers believe they need a 20% down payment to qualify for a mortgage.