Aid will be available to borrowers through its Home Possible program
Freddie Mac has introduced a new down payment assistance program to support very low-income families eligible for Freddie Mac’s Home Possible and HFA Advantage mortgage products.
The mortgage giant is offering a $2,500 credit to help with down payment and closing costs for potential homebuyers earning 50% or less of the area median income.
“Studies show that down payment and closing costs are among the largest barriers to homeownership for very low-income homebuyers,” said Sonu Mittal, head of single-family acquisitions at Freddie Mac. “Our commitment to supporting these families runs deep, as we have provided assistance to this population through various programs since 2018. We are pleased to now make this assistance more broadly available to borrowers through our Home Possible program.”
Available starting March 1, eligible borrowers will be able to use the funds for down payments, closing costs, escrow, and mortgage insurance premiums, among others. The credit will be available through two of Freddie Mac’s key mortgage products: Home Possible, which offers down payment options as low as 3% and credit flexibilities for very low- to low-income borrowers, and HFA Advantage, tailored exclusively for housing finance agencies (HFAs) that provide strategic solutions for expanding homeownership responsibly.
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“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,” Mittal added.
In addition to this credit initiative, Freddie Mac has introduced DPA One, a comprehensive tool that consolidates information on down payment assistance programs into a single platform. DPA One aims to streamline the process for lenders to access and compare various programs and for providers to enhance visibility and efficiency in their offerings.
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