Fannie Mae Wants to Make it Easier to Build a Home
Despite the currently thriving U.S. real estate market, it is still rather difficult for prospective homebuyers to build a home these days. The low housing supply yet high demand for homes has made homeownership unaffordable for many. Mortgage mogul Fannie Mae is seeking to change this.
Fannie Mae is taking an array of initiatives to address the lack of affordable homes, beginning with a pilot program that makes it easier to obtain a construction loan. Under the program, lenders would be able to sell their loans to Fannie Mae as soon as construction starts and borrowers would not have to start making payments until after they have moved into their homes. Jon Lawless, vice president for product development and affordable housing at Fannie Mae, said he hopes that this is the first in a series of programs meant to address the country’s low housing supply.
While Fannie Mae is optimistic about their initiatives, others are skeptical of how effective these initiatives will truly be. Edward Pinto, co-director of the American Enterprise Institute’s International Center on Housing Risk, stated, “It’s a lot easier to say you’re going to do something about supply than it is to get it done.”
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