Fannie Mae is Testing New Type of Construction Loan

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Posted To: MND NewsWire

With new home building still lagging other measures of the housing recovery, and lean inventories of new homes causing shortages of existing homes as well, Fannie Mae is seeking ways to provide a little help . The company has plans to test market at least one new product for purchasing newly constructed homes before they are built. A pilot program is still in the talking stages and apparently has not yet received approval from Fannie Mae’s regulator, the Federal Housing Finance Agency. But according to sources at the company, the first initiative might make it cheaper and simpler to get a loan for new home construction. If a consumer wants to build a home, the present process calls for him or her to hire a builder and obtain a construction loan. When the house is complete, the borrower must…(read more)

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