The Future of Fannie Mae and Freddie Mac

It’s clear that some type of reform is in the works. But what will this reform look like?


The bad news is that homeownership might be out of reach for some. The good news, however, is that long-term renting is becoming a more accepted practice.

[See 9 Smart Ways to Come Up With Down-Payment Cash.]

If you're determined to buy a home, the key is saving. Sizable down payments are now needed to qualify for a mortgage, and the government will only insure borrowers with a good credit history.

Housing prices remain depressed. So while a down payment is necessary, it's not impossible to cobble together. "[H]omeownership is a self-imposed savings plan. Not everyone should own a home, but from a financial perspective, people who are planning to stay in a property over the long term can benefit from buying," Ken Johnson, editor of the Journal of Housing Research at Florida International University said at a recent conference.


Corrected on 12/15/11: A previous version of this story misspelled the name of U.S. Senator Johnny Isakson, and erroneously used the word “lenders” in place of “borrowers.”

Fannie Mae
Freddie Mac