I noticed in today’s Originator Times, a website for mortgage loan originators, that Fannie Mae is loosening up their guidelines for down payment policies by going to a national, single down payment policy to replace the now required higher down payments in markets where home prices are declining. Knoxville, Tennessee BTW is not one of these markets; our home prices increased about 2% over last year’s prices.

However that still does not make them competitive with FHA insured mortgages in the greater Knoxville, TN area because of their “risk based” interest rates and higher mortgage insurance premiums for borrowers getting a mortgage for more than 80% of the value of the home they’re buying.

Current Fannie Mae requires you to accept a higher interest rate for lower credit scores, which translates into higher monthly payments, if your credit score is under 720 which is really a pretty decent score. If your FICO score is below 620 you would be looking at an interest rate over 7% today for a Fannie Mae loan.

In the Knoxville area the new FHA loan limits are up to a $271,000 sales price and you can still qualify with a credit score as low as 580!

If buying a home in the Knoxville or Farragut area is in your future I invite you to call me and let’s talk about how we can make that happen for you.

There is a big selection of homes for sale, interest rates are both attractive and available (contrary to what you hear in the news), and it’s a buyer’s market in Knoxville, Tennessee.

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You can view Knoxville, Farragut, Maryville, Oak Ridge, and other area homes for sale on my website, www.KnoxvilleHomeCenter.com.