Mortgage giant Fannie Mae could be on the verge of introducing a pilot program to change the way it buys residential construction loans.
The GSE could implement this program in order to help with the lack of affordable homes available for sale.
Under the new program, Fannie Mae would buy the loan on the first day of construction, possibly making the loan easier to get and cheaper. The borrower wouldn’t begin making payments until after they moved into the home.
This could make loans cheaper and not force lenders to hold a construction loan on their own books until the home is completed.
Read more in Housing Wire.