Freddie Mac Expands Aid for Low-Income Borrowers
Freddie Mac announced a $2,500 credit to help with down payments and other closing costs.
MCLEAN, Va. – Freddie Mac announced a $2,500 credit to help very low-income homebuyers earning 50% of the area median income or less.
Funds, available beginning March 1, can be used for a down payment, closing costs, escrow and mortgage insurance premiums. It will be available across Freddie Mac’s Home Possible and HFA Advantage mortgage products
“Today’s announcement is a vital lifeline for would-be homeowners, as studies show that down payment and closing costs are among the largest barriers to homeownership for very low-income homebuyers,” said Sonu Mittal, SVP and head of Single-Family Acquisitions at Freddie Mac. “We are pleased to now make this assistance more broadly available to borrowers through our Home Possible program.”
A Freddie Mac spokesman said the company financed about 800,000 home purchases in 2023. First-time homebuyers represented approximately 51% of those purchases, the highest percentage since the company started tracking that statistic three decades ago.
In addition, the company expects it will achieve all its 2023 affordable housing goals set by the Federal Housing Finance Agency.
Mittal added, “This new effort continues the progress we made in 2023 and is particularly important in today’s housing market, where elevated rates and low supply have created affordability challenges for many families. We look forward to announcing additional ways to support low-income borrowers in the months ahead.”
In late January, Fannie Mae announced a $2,500 loan-level price adjustment credit for very low-income purchase borrowers through its HomeReady mortgage program.
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