It’s been nearly two years since Freddie Mac introduced its 3% down mortgage product to entice more first-home buyers and other qualified borrowers to jump into the market. But, HousingWire staffer Brena Swanson reports, the product still barely makes a dent in Freddie Mac’s first-time home buyer portfolio.
Freddie Mac CEO Donald Layton pointed out that 42% of non-refinance purchase buys were to fund loans to first-time home buyers, which is the highest level in 10 years. He also noted that the 97% LTV product has significantly attractive characteristic for first-time home buyers.
However, despite both factors, he said that the numbers are not large enough to be driving an increase yet.
Right now, the product's level of success is hard to judge since the GSE chooses not to disclose the information.