Help first-time homebuyers navigate the complex home-buying process. Use these valuable resources to:
- Learn more about our mortgage products and training opportunities
- Help first-time homebuyers get started
- Assist business sources in preparing mortgage-ready homebuyers
Product Information and Training
Grow your business by offering first-time homebuyers mortgage options that meet their needs. We have competitive and responsible mortgage solutions for mortgage-ready borrowers, even those with limited funds for down payment.
Home Possible® mortgages. Leverage the power of our low down payment mortgage program to serve low- to moderate-income borrowers, millennials and underserved communities.
HFA Advantage® Program. Refer borrowers who need down payment assistance to their nearest housing finance agency (HFA), where they can qualify for a grant and take advantage of our special mortgage offering just for HFAs.
Fixed-rate mortgages. Leverage the power of a fixed interest rate for the life of the loan with a traditional 15-, 20-, or 30- year fixed-rate mortgage. These products offer payment stability and are an excellent option for first-time homebuyers.
Super conforming mortgages. Increase your market penetration with affordable financing options for homebuyers who are looking to buy their first homes in high-cost areas.
Search ‘Loan Product Advisor’ on both Freddie Mac Learning and The Learning Center for training and education resources
Condominium Projects Eligibility Requirements. This 90-minute interactive webinar will provide originators, processors, and underwriters with a high-level overview of Freddie Mac’s requirements for Condominium Unit Mortgages.
Assets and Acceptable Sources of Funds. In this interactive 90-minute webinar we will review our requirements, guidelines, and policy changes for asset calculation and documentation to help ensure that borrowers have acceptable and sufficient funds.
Underwriting Income and Employment. In this interactive two-hour webinar we will review our requirements, guidelines, and policy changes for employment and income calculations and documentation to help ensure that borrowers have the ability to repay obligations.
Grow Your Business Sources
Strengthen your relationships with real estate professionals, brokers, correspondents,and housing counselors by offering borrower outreach materials that help these business sources better prepare borrowers for homeownership.
Your Step-by-Step Mortgage Guide. Share this publication with your business sources so they can help potential homebuyers navigate the mortgage process and take the right steps to purchase their home. Contact information and logo can be added to the front and back covers. Available in English and Spanish.
Homeownership Education Series. These ready-to-use educational materials can be used to guide consumers through the various stages of the homebuying process . Available in English and Spanish.
Freddie Mac Real Estate Professionals Resource Center – Send real estate professionals to this comprehensive resource website.
Freddie Mac Housing Counselors Resource Center – Direct the housing counselors in your network to Freddie Mac’s website dedicated to serving their needs.
Blog Posts. Share the link to our free Blog posts with your network. Topics include posts on owning or renting a home, the housing market, and housing finance – plus how they impact the broader economy. They can also share tips on buying a home and avoiding scams. Find out where their housing market – and the next generation of homebuyers – are headed. They can even view the latest research and analysis on key housing topics from housing affordability to current market trends.
My Home by Freddie Mac® consumer website. Share with your business sources the link to this interactive website for consumers that helps them become smart homebuyers, homeowners, and renters.
- Instructions on How to Customize the Marketing Materials
Learn more about available programs that can help qualified homebuyers – including first-time homebuyers – bridge down payment and closing cost gaps in the Explore Down Payment Assistance Options section.
Take advantage of these resources to expand your reach and assist first-time homebuyers with the homebuying process.
Do You Picture Your Child in Their Own Home One Day?
Paint the Walls Any Color You Want.
Understanding Automated Underwriting. This customizable marketing brochure provides details for your borrowers about automated underwriting and the role it plays in the mortgage process.
Customizable marketing materials. Enhance your first-time homebuyer borrower outreach efforts with these pre-designed marketing materials that you can customize with your logo and contactinformation.
Visit our Affordable Lending web page.
First-time house purchasers generally have a complete large amount of questions regarding the mortgage approval procedure. Probably one of the most common concerns we have from our readers is: Exactly what are the steps in qualifying for a mortgage as being a buyer that is first-time? And which are the minimum certification requirements to get a mortgage loan that is first? Here’s what you ought to understand.
Just how to be eligible for a true home Loan as a First-Time Buyer
Mortgage brokers glance at a number of facets when loan that is considering. Earnings, credit ratings, financial obligation ratios, and advance payment funds are among the many factors that are important first-time buyers qualifying for a mortgage. Therefore let’s speak about each one of these.
1. Credit History Needs
Fico scores are one of the more crucial certification demands for a mortgage. This really is true for first-time and buyers that are repeat.
Credit ratings are three-digit figures that basically show the way you have lent and paid back cash into the past. They have been computed immediately by sophisticated algorithms which use information discovered inside a person’s credit file. The FIFO credit scoring model may be the one most often utilized by mortgage brokers. It comes to qualifying for a home loan as a first-time buyer so it’s generally the one that matters most, when.
Minimal credit-score requirements can differ from a home loan system to another. The FHA loan system the most lenient, with regards to credit criteria. First-time house purchasers whom utilize an FHA loan should have a credit rating with a minimum of 580, if they desire to utilize the 3.5% advance payment option.
Traditional mortgages (that are not insured or fully guaranteed by the government) typically have greater credit score demands. To be eligible for a mainstream loan, first-time house buyers may need a credit rating of 600 or more. That quantity isn’t fundamentally written in rock, nonetheless it does represent a cutoff that is common employed by lenders. Some set the club even higher at around 620. It may differ.
All sorts of things that an increased credit rating can help you when qualifying for a mortgage being a buyer that is first-time. It may additionally assist you to secure a reduced mortgage rate, that could help you save money in the long run.
2. Fundamental Money Demands
Your earnings degree will even impact your capability to be eligible for a a mortgage loan as being a first-time customer. That is real for repeat purchasers aswell.
For apparent reasons, lenders desire to make certain you have actually enough income to settle your house loan responsibility.
3. Debt-to-income Ratios
Home financial obligation is yet another crucial certification requirement for first-time home purchasers searching for a home loan loan. Mortgage brokers will review your overall debts to ensure that you’re not dealing with an excessive amount of debt that is additional the purchase of mortgage loan.
To get this done, they appear at something referred to as the debt-to-income ratio, or DTI. It is essentially an assessment involving the amount of cash you earn and also the amount you spend on the debts that are recurring.
Right right Here once again, there’s absolutely no solitary threshold that is applicable over the mortgage industry that is entire. Lots of loan providers today set the club somewhere around 40per cent to 43per cent, with regards to total ratio that is debt-to-income. Borrowers who possess compensating factors could be permitted to have total DTI because high as 50%. It differs.
The conclusion listed here is that when your combined monthly debts “soak up” more than 50% of the earnings, it’s likely you have difficulty qualifying for a mortgage as a first-time customer.
4. Papers, Papers, Documents
We simply talked on how mortgage brokers will verify earnings and financial obligation amounts. They are doing this by taking a look at your income tax records when it comes to last year or two, bank statements, spend stubs, and much more. Expect you’ll offer these as well as other monetary papers when qualifying for a mortgage.
5. Minimal Down-Payment Needs
Down re payments are another requirement that is important first-time purchasers. Until you work with a government-backed system, such as for instance a VA or USDA loan, you are going to need certainly to make a advance payment of some sort.
The minimum down-payment requirement of qualifying for the mortgage loan can differ, according to the sort of mortgage getting used. Traditional loans can need as low as 3% down in http://www.speedyloan.net/installment-loans-hi/ a few full instances, while some loan providers may need 5%. The FHA home loan program allows for the payment that is down of% for the price or appraised value.
The good thing is that first-time house buyers can acquire advance payment funds from a third-party, such as for instance a relative or friend that is close. Many mortgage programs enable down payment gift suggestions, which can be money written by a party that is third the debtor that is really purchasing the house.
The essential caveat is the fact that the cash must undoubtedly be something special, and not a social legislation. In reality, the individual supplying the funds will need to offer something special page also, which must declare that they cannot expect any type or form of payment.
So those are among the crucial considerations when qualifying for a mortgage as a buyer that is first-time. Most of the time, borrowers looking for home financing loan desire a credit that is decent, a workable amount of debt, and in some cases a deposit.