Items Tagged with 'Home Possible Mortgages'

ARTICLES

  • Freddie Mac to allow some borrowers to use “sweat equity” to cover entire down payment

    GSE expands “sweat equity” loan program
    Freddie Mac has long allowed certain borrowers to use “sweat equity” to cover a portion of their down payment, but now, the GSE will allow borrowers to use “sweat equity” to cover their entire down payment. Under the expansion, certain borrowers will be able to “sweat equity,” materials provided or labor completed by a borrower to improve a house before closing on the property, as their full down payment.
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  • Lenders react to end of Freddie Mac 1% down payment mortgage offerings

    Quicken Loans and UWM weigh in
    0% down and 1% down mortgage offerings just started to gain traction in the industry before Freddie Mac announced it completely nixed the program option. So what was the goal in rolling out the 3% down or less options? Help spur homeownership and give first-time homebuyers an affordable conforming, conventional mortgage option. And according to an interview with Quicken Loans and United Wholesale Mortgage that is exactly what the programs were doing.
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  • Freddie Mac kills 1% down payment mortgages

    Borrowers must now use their own money for entire 3% down
    Freddie Mac announced it is changing the requirements to its low down payment mortgage program and will no longer allow lenders to contribute gifts or grants to reach the 3% down requirement. Borrowers must now front the entire 3% down payment from their personal funds, meaning the industry can say goodbye to the 1% down mortgage, at least from Freddie Mac.
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