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Freddie Mac’s New 3% Down Program

Spring-Piggy-Bank

Today, Freddie Mac is scheduled to start buying mortgages with down payments of only three percent – the first time down payments have been this low on Freddie Mac loans in nearly five years. The program is called Freddie Mac Home Possible AdvantageSM.

In a recent Executive Perspectives, Dave Lowman EVP, Single-Family Business Freddie Mac, explained the potential impact this program will have on the housing market:

“There’s a new reason Realtors and lenders may expect more qualified borrowers at the closing table during this spring’s home buying season. In addition to low mortgage rates and rising job growth, the down payment hurdle is starting to shrink for creditworthy borrowers, including first-time homebuyers.”

And the mortgage industry agrees with Mr. Lowman. In a recent survey of mortgage originators by the National Association of Realtors (NAR), it was revealed that most loan officers believe the move to a lower down payment will increase access to mortgage credit. Here are that survey’s findings:

Down Payment Survey | Keeping Current Matters

Many potential buyers are “ready and willing” to buy a home but have been afraid they may not be “able” because of a lack of adequate savings for a down payment. With these new rules, you may be able to revisit buying a home now.

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Paul Rosso

Trusted Real Estate Adviser at RE/MAX Properties, Ltd
Paul has been selling real estate for over 30 years.. He has consistently been a top producer and has helped hundreds of families sell and buy homes in the area. Paul has achieved the prestigious RE/MAX Home Of Fame designation, the highest award given by RE/MAX. The award is given to those agents who have consistently produced the highest level of sales production and is awarded to less than 1% of all the agents in the world.

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