1% Down Payment Impossible After Freddie's Guideline Change

Posted To: MND NewsWire

Freddie Mac has announced a change in requirements for its Home Possible Mortgages, including Home Possible Advantage Mortgages. The changes involve lender gifts and grants , and will be effective for loans with settlement dates on and after November 1 unless otherwise noted. Gifts or grants from the originating lender will be permitted only after the borrower contributes at least 3 percent of the lesser of either the property's appraised value or its purchase price. The contribution must come either from the borrower's personal funds or other eligible sources. Previously the amount of the contribution had to be a minimum of 1 percent. Gifts or grants from the Seller must not be funded through the Mortgage transaction, including differential pricing in rate, discount points, or fees for individual...(read more)

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