For the first time in nearly five years Freddie Mac is offering qualified buyers a loan with only 3% down payment. This is exciting news for soon to be homeowners especially since it was not long ago the National Association of Realtors was fighting hard against the proposed bill of requiring a 20% down payment on home loans.
Many potential buyers are ready and willing to buy a home but haven't been able to buy a home due to the large down payment requirements. Freddie Mac Home Possible Advantage(SM) gives qualified borrowers with limited down payment savings an opportunity to buy a home.
Some of the key features are:
- Fixed-rate mortgages
- Closing cost funding options
- Reduced mortgage insurance
- No cash-out refinancing
- 15, 20, and 30 year fixed rate mortgages
First time homebuyers must participate in a borrower education program, like Freddie Mac's CreditSmart® to qualify.
Established by Congress in 1970 Freddie Mac is one of the largest sources of financing and was formed to provide liquidity, stability and affordable loans to the residential mortgage markets.
Check with a local real estate or mortgage professional to understand what the new loan program may mean to you.
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