Freddie Mac announced a $2,500 credit to help with down payments and other closing costs.
MCLEAN, Va. – Freddie Mac has announced a $2,500 credit to assist very low-income homebuyers who make 50% or less of the area median income.
The funds will be available starting March 1 and can be used for down payments, closing costs, escrow and mortgage insurance premiums. It will be available on Freddie Mac's Home Possible and his HFA Advantage mortgage products.
“Today’s announcement is critical for aspiring homeowners, as research shows that down payments and closing costs are one of the biggest barriers to homeownership for very low-income homebuyers. It’s a lifeline,” said Sonu Mittal, SVP and head of single-family home acquisitions at the company. freddie mac. “We are pleased to now make this assistance more widely available to borrowers through the Home Possible program.”
A Freddie Mac spokesperson said the company financed about 800,000 home purchases in 2023. First-time homebuyers accounted for about 51% of those purchases, the highest percentage since the company began tracking this statistic 30 years ago.
Additionally, the company expects to meet all of the Federal Housing Finance Agency's 2023 affordable housing goals.
Mittal added: “This new initiative continues the progress we made in 2023 and continues in today's housing market where rising interest rates and lack of supply are creating affordability challenges for many families. “This is especially important,” he added. We look forward to announcing additional ways to support low-income people in the coming months. ”
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.
® 2024 Florida Realtors
