We often see home buyers (especially first-timers) fall short when it comes to putting a down payment on their dream home. Whether it be low-income clients or borrowers with minimal savings — you know the scenario all too well.
Fairway Wholesale Lending understands the need for options, so we are excited to announce the release of our new down payment assistance program, Freddie Mac BorrowSmart℠. The program is designed to can take a bite out of your clients’ down payment and closing costs. (In some cases, it may even provide all the cash your clients need to close on a dream home.)
Details About Freddie Mac BorrowSmart℠
The Freddie Mac BorrowSmart℠ program can provide up to $2,500 in down payment/closing cost assistance. The amount of the assistance received is based on the area median income of moderate, low, or very-low-income borrowers and is provided by Homeownership Preservation Foundation.
Freddie Mac BorrowSmartSM can be used in conjunction with the Freddie Mac Home Possible and Freddie Mac Home One first mortgage products.
Program Highlights:
- Program is available in all 50 States
- Assistance funds can be used for required down payment, closing costs, and/or reserves and do not have to be repaid
- Program is available for 1-4 Unit Primary Residences
- Program is available for Condos / PUDs
- Assistance funds can be used in conjunction with other down payment assistance (DPA)* Programs
- Pre-purchase homebuyer counseling is required for all borrowers
- The very-low-income program (less than or equal to 50% AMI) will equate to $2,500 in down payment/closing cost assistance**
- The moderate-income program (greater than 80% and less/equal to 100% AMI and be in high needs area) will equate to %1,250 in down payment/closing cost assistance
- The low-income program (greater than 50% and less than/equal to 80% AMI) will equate to $1,000 in down payment/closing cost assistance.
Note: Loan approval is subject to credit approval and program parameters. Freddie Mac BorrowSmart SM can only be used in conjunction with Home Possible® or HomeOne® first mortgage. A pre-purchase counseling session is required. GreenPath/HPF will provide counselor information; a fee of $99 must be paid by the borrower.
Email training@fairwaywholesalelending.com for information on FREDDIE MAC BORROWSMART℠ training.
Contact your Wholesale Account Executive if you have any questions.
