The Freddie Mac BorrowSmart℠ Program provides up to $2,500 in closing costs assistance.
The large down payment is often the biggest barrier to homeownership, particularly for first-time buyers with little funds.
The Freddie Mac BorrowSmart℠ program may provide all the money you need to close on a home, provided that it takes a bite out of your down payment and closing costs.
What information do you require about Freddie Mac’s BorrowSmart program? The Freddie Mac BorrowSmart program may provide up to $2,500 in down payment/closing cost assistance based on area median income (AMI) and other eligibility criteria. 100% of the funds required to close the deal may be covered.
The program may be used with single-family homes, condominiums, planned unit developments (PUDs), and manufactured homes (not eligible for HomeOne).
When applying for Freddie Mac BorrowSmart, borrowers are assigned to one of three tiers based on their qualifying income.
Make sure your AMI and high-need area eligibility is checked: There is no need to panic if you don’t know the AMI of your city immediately. You can utilize the Freddie Mac Home Possible Income and Property Eligibility Tool to discover it.
If your income is above 80% of the AMI, you must also be in an eligible high-needs area. The ‘High-Needs Rural Tract’ will display ‘Yes’ if you are eligible or ‘No’ if you are not eligible through the eligibility search tool.
The Home Possible Income Limit is listed if the property is eligible for Home Possible, and you will find out whether you fall within the 50%, 80%, or 100% income bracket based on the AMI.
The Freddie Mac BorrowSmart program benefits homebuyers: Low-income homebuyers can benefit from Freddie Mac BorrowSmart assistance in several ways. First, the assistance may be used to fund up to 100% of the borrower’s required cash to close. Imagine buying a home with little to no down payment!
Even if it doesn’t cover all of the money required to close the deal, an earnest money deposit allows buyers to bring less money to the signing ceremony. That leaves a bit more in your pocket for future repairs, mortgage payments, and emergencies.
In addition to being mandatory, homebuyer counseling prepares buyers for sustainable long-term homeownership.
A competitive housing market may be empowered by the assistance, resulting in more confidence and purchasing power.
You can qualify for Freddie Mac’s BorrowSmart assistance program: Certain buyers are not eligible for Freddie Mac BorrowSmart assistance.
In order to qualify for a 12% down payment conventional mortgage, you must have an income level at or below 100% of the area median income. Next, narrow down the property type and purchase area (to the county and zip code level).
As of November 8, 2021, Freddie Mac BorrowSmart is available in all 50 states, except Hawaii and Alaska.
It’s time to get started: The Freddie Mac BorrowSmart program is an easy way to save money for future expenses or bring more money to the closing table for those who are eligible. You may even learn something during the home buying counseling session with one of our experts.
It is even better if this assistance is combined with gifts from family members and other down payment assistance.
Affiliated Mortgage completes a preliminary review of credit information before pre-approval. You have supplied verifying documentation voluntarily. Final loan approval is based on a full underwriting review of support materials such as creditworthiness, assets, income information, and an adequate appraisal, not including applicants.
Certain qualifications and restrictions apply; eligibility is contingent on program stipulations, qualifying factors, income and debt-to-income (DTI) restrictions, and property limits.
About Affiliated Mortgage: Through our 23 states branch network, Affiliated Mortgage is a reputable mortgage company. Our corporate headquarters are situated in Rapid City, South Dakota. In addition to South Dakota, North Dakota, Arizona, Wyoming, Montana, Iowa, and Florida, we operate in over 23 states. We are here to assist you with all aspects of financing your home. We are dedicated to simplifying the mortgage process for our customers. We provide transparency and ease at all times. Our professionals assist our customers in obtaining the best possible mortgage rates. When you need a mortgage, there are a lot of issues to consider. Our experts are available 24/7 to answer all of your questions and get the process started as quickly as possible.
Click here to check if you are eligible for BorrowSmart℠
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