One of our seasoned listing agents just received a seller-financing request that is so crazy, brazen, risky, and awful – that I had to blog about it. Fannie Mae and Freddie Mac guarantee mortgage financing scenarios that no commercial bank would ever offer. These include low-down-payment scenarios (10% or less), weak-credit scenarios (scores under 680), and high-debt-ratio scenarios. This enables cash-starved and less-established borrowers to buy homes – but it also, of course, artificially inflates demand and housing prices (a topic for another blog).Read More