Home Buyers Education

As the number of mortgage lenders increases, competition forces lenders to get more creative in finding ways to lend people money. This often takes the form of a "break" in the down payment. The downside of this approach is that statically, the smaller the down payment, the more likely the borrower will default. Lenders have to put together an education program to prevent delinquencies, which fills a much-needed gap in the increasingly complex world of home finance.

Home buyer education classes focus on a variety of money management topics, including all the costs connected with obtaining and owning a home. One lender got together with FANNIE MAE (a government sponsored loan guarantor) to launch a 3 percent down payment loan which requires participation in this education course. Other lenders have shown a decline in the default rate with five percent loans hat are associated with similar education courses.

For professional advice on all aspects of buying and selling real estate call Juniper Realty, 781-769-4818 or email us at juniperrealty@aol.com