Phoenix First Time Home Buyer Programs

Phoenix First Time Home Buyer Programs
Kelley Norton:
Hey, how’s it going? I’m Kelley Norton, your AZ Realty Lady. And I am sure you’ve heard the buzz about today’s real estate market.

Unfortunately, buyers are having a really hard time getting their offers accepted, and first time home buyers are really having a hard time. They’re up against a lot of cash buyers, they’re up against a lot of investors. So this is very difficult for that first time home buyer that needs to get a house, but just can’t compete against the cash and the big, large down payment buyers. So I have some fabulous news for you today because there has been some changes with Fannie Mae. So I have a lender that’s going to be joining me here in just a minute, and we’re going to break this all down for you and explain exactly how this is going to help those first time home buyers in today’s crazy sellers market and hopefully will allow you to have a little bit of a better chance of getting your home and getting that offer accepted.

So as promised, I have brought in a fabulous lender that is going to chat with us about the changes that are happening with Fannie Mae that are hopefully going to help you if you’re a first time home buyer to get that offer accepted. So I would like to introduce Angelina. So here she is, go ahead and introduce yourself.
Angelina:
Hi there. Thanks Kelley for having me. So happy to be here. I’m Angelina, a mortgage loan officer with Neighborhood loans.

Kelley Norton:
Hi, I’m Kelley Norton, your AZ Realty Lady. I hope that you’re enjoying the information that I’m providing for you. Please subscribe to my channel and click the bell above, so you’ll be notified when I drop a new message. Take care.

Kelley Norton:
Perfect. All right. So you had informed me that some exciting news, I think it’s exciting for first time home buyers or folks that might not have huge down payments that can’t really compete with those cash buyers. So let’s just kind of bring people into first, what is Fannie Mae?
Angelina:
So Fannie Mae is an agency that was created in 1938 to help bring affordable housing to people that are buying homes.
Kelley Norton:
Yes. Important.
Angelina:
Very important.
Kelley Norton:
Yes. And, and that’s kind of something that’s designed to keep things from happening like what’s happening right now, where it’s not affordable for a first time home buyer to get a house because they just can’t compete. What we’re seeing in the market right now is that a lot of these investors are buying these houses cash and because interest rates are so low, what are they doing with them?
Angelina:
They’re turning around and saying, “Hey, can you pull up that cash for me and do a cash out refinance.” Which, right now with the rates being so low, I don’t blame them. Why not? And then you win that offer and then you get your cash back later.
Kelley Norton:
Exactly, but it makes it difficult for the first time home buyers, because these investors, I mean, they’re using their cash to their advantage. It’s smart. It’s smart use of their money because they can borrow against something and have really low interest rate. So that’s what they’re doing, they’re purchasing the house cash and then they’re able to borrow against that at a low interest rate and use that in whatever way they want. And that’s a challenge for the first time home buyer that’s up against that cash buyer. And you mentioned that, Fannie Mae was starting to realize that the numbers of where they like those loans and those percentages to be are a bit off. So can you talk a little bit about that?
Angelina:
Yeah. So Fannie Mae, their mission basically is to help home buyers get into homes and they started to look at their portfolio. They realized, hey, we’re seeing a lot of investors, we’re seeing a lot of people buying second homes, which is driving down the ability for people, like you, to get into a home. So they said, hey, you know what? We need to stop this. We need to go back to what our mission is. We don’t want to see more than 7% of our book of business going to an investment or second homes. So right now they’re already at 7%.
Kelley Norton:
Yes. We’re nearing the end of the first quarter so that’s not good. I’m just going to ask you to speak up just a tad, because we have a little bit of background noise, and I want to make sure that you hear her because she has some great information to share. So just yell at the camera.
Angelina:
This is basic economics. When you have too much of something, what do you do? You raise the price so you get less of it. So if you’re an investor or somebody buying a second home, it means it’s going to cost you more because Fannie says, we don’t really want as much of that business. We want to help home buyers get into homes.
Kelley Norton:
Going back to their original mission, right? Helping the first time home buyers.
Angelina:
Exactly.
Kelley Norton:
So I think this is fantastic because what’s going to happen, I think and of course, Fannie Mae, this is their goal is that this is going to allow those buyers that have a lower down payment or first time home buyers be able to compete a little bit more in the market because those investors are probably going to pull back a little bit on those options of borrowing the money. It’s going to be more expensive. They’ll go to the next best thing that they can find where they can leverage their money in a less expensive way.
Angelina:
I agree, because their investment changes, obviously, if you know the cost to get your money back may not exist, number one, or it’s going to cost you a lot of money. That investment is no longer as valuable.
Kelley Norton:
Higher risk.
Angelina:
Higher risk. Exactly.
Kelley Norton:
So when does this go into effect?
Angelina:
We’ve already seen a couple changes, but April 1st is what Fannie Mae says. Lenders right now, we are in the business of lending money and then we sell it to Fannie Mae, and if we cannot sell it because things change that puts us in a bad situation for sale-ability. So we’ve already started seeing changes. When I start pricing out those investor loans, they cost more, they just cost more.
Kelley Norton:
Makes sense.
Angelina:
It’s already happening and Freddie Mac is the other agency that buys loans and whatever Fannie does, Freddie seems to do. Pretty much the same thing.
Kelley Norton:
Yep. What she does they follow.
Angelina:
So changes are already happening.
Kelley Norton:
Okay. So if somebody were to be getting a loan say now versus the end of April and they are an investor and they are watching this, then they need to be prepared that this is maybe going to change things for them.
Angelina:
It’s definitely going to change things for them. So I would say, if you’re already working with somebody and your rate’s not locked, you’re going to want to talk about getting that rate locked because what you thought it was going to be and what it actually is going to be are two different things if you-
Kelley Norton:
Change is a coming.
Angelina:
They’re coming.
Kelley Norton:
So for the first time home buyer, do your little party dance, because this is definitely good news for you. Fannie Mae is your cheerleader, they have your back and they’re trying to make it more affordable for you. So hopefully you’re smiling right now because we are. We think it’s amazing news.

So Angelina, why don’t you give your phone number? If anyone has any further questions or needs to get pre-qualified to buy that first home, maybe they’ve been scared and here’s the chance to maybe see what their purchase power is.
Angelina:
There’s no obligation whatsoever just to get information. My number is 602-349-0291. 602-349-0291.
Kelley Norton:
Hope that you found this information useful. Again, this was an update on Fannie Mae changes that are going to be coming up and kind of already started, but definitely into effect April 1st. Hopefully Freddie Mac will follow. And this is just good news for you first time home buyers and buyers that maybe have a lower down payment because you might not have as much competition with those investors that are just throwing all the cash down.
Angelina:
Sorry investors.
Kelley Norton:
Sorry investors. Yes. We still love you, but we really got to help these first time home buyers because it’s absolutely heartbreaking. We both have a ton of buyers that just can’t get homes right now and that’s the hardest part. So many people say, oh, it’s a great time to be a real estate agent. It’s a great time to be a lender. When you have a listing, it sells fast, that’s great. But when you’re helping buyers it’s absolutely heartbreaking if you can’t get these buyers their first home. They’re so excited about it and interest rates are so low that it’s a great time for first time home buyer to buy.
Angelina:
But you do go above and beyond to get people into homes. I’ve seen this woman work.
Kelley Norton:
I do think outside the box, I try really, really hard, but we don’t win all of them, but I certainly do try my very, very best. But it is still heartbreaking when we miss out, especially against the cash buyers. So this is great, exciting news. And if I can help you in any way or Angelina can, you can always reach out to me. Otherwise, she’s provided her number and my number is 602-330-5856. And you can always email me, text me, call me, I will answer my phone and I’ll get back to you. You just communicate in any way that works for you. Take care, have a good day.
Angelina:
Bye.
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