Mortgage

6 myths about Freddie Mac’s 3% down mortgage

Don't let these block you

Freddie Mac launched its Home Possible Advantage program featuring its 3% down payment option back in December in an attempt to open the credit box for borrowers wanting to jump into the housing market.

But what was designed to help more first-time homebuyers and other qualified borrowers jump into the market has struggled to get off the ground due to lender fears and even borrower misconceptions.  

HousingWire addressed the first issue in its recent webinar with Freddie Mac and U.S. Bank titled, “The secret to closing more 3% down mortgages.” A link to the full webinar will be available shortly.

As far as homebuyer misconceptions, Danny Gardner, Freddie Mac vice president, said in a post, “What will it take to green up this year's spring home-buying season with first-time buyers? Information is part of the answer. As an industry, we have to drive a stake through a few stubborn myths that are draining life out of the market.” 

One of the most common ones that Gardner mentions is that buyers believe they need a 20% down payment to qualify for a mortgage.

To counter those misconceptions Freddie Mac designed this handy flash card to dispel some of the common myths.

Click chart to enlarge

chart

(Source: Freddie Mac)

For more extensive help, check out Freddie Mac’s Real Estate Professionals Resource Center. 

Most Popular Articles

Is the coronavirus about to wipe out FHA lending?

It looks like borrowers who don’t fit neatly into Fannie Mae and Freddie Mac’s lending criteria could soon be running out of options if they want to buy a house. Over the last week, many (if not all) of the biggest lenders specializing in lending to borrowers outside the QM lending box paused their activities due to uncertainty in the market. And now it appears that FHA lending as we know it is disappearing from the market too.

Mar 27, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please