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.
Products
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.
Training
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
- Terms of Use
Additional Resources
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.
Reach Borrowers
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 home purchasers generally have large amount of questions regarding the home loan approval process. Probably one of the most common concerns we have from our visitors is: which are the steps in qualifying for a mortgage as 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 mortgage loan as a First-Time Buyer
Mortgage brokers have a look at a number of factors whenever loan that is considering. Earnings, credit scores, debt ratios, and down payment funds are for the many critical indicators for first-time purchasers qualifying for a mortgage. Therefore let’s speak about each one of these.
1. Credit History Requirements
Credit ratings are perhaps one of the most essential certification demands for a mortgage. This might be real for first-time and repeat purchasers alike.
Credit ratings are three-digit figures that show how you basically have actually lent and paid back cash within the past. They have been computed immediately by sophisticated algorithms which use information discovered inside a credit that is person’s. The FIFO credit scoring model could be the one most frequently employed 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 demands can differ from 1 mortgage program to another. The FHA loan system the most lenient, when it comes to credit requirements. First-time house purchasers whom utilize a credit must be had by an FHA loan rating of at the very least 580, when they need to make use of the 3.5% advance payment option.
Mainstream mortgage loans (that are not insured or fully guaranteed because of the government) typically have greater credit score needs. To be eligible for a loan that is conventional first-time house purchasers may need a credit rating of 600 or maybe more. That quantity is not always printed in rock, however it does represent a typical cutoff point employed by mortgage lenders. Some set the club also higher at around 620. It can differ.
All sorts of things that a greater credit history can help you whenever qualifying for a mortgage being a buyer that is first-time. It may also allow you to secure a lower life expectancy home loan price, which may save cash as time passes.
2. Basic Money Needs
Your revenue level may also influence your capability to be eligible for home financing loan as a first-time customer. This will be real for perform purchbecauseers also.
For apparent reasons, mortgage brokers like to make sure that you have actually enough earnings to settle your property loan obligation.
3. Debt-to-income Ratios
Domestic debt is another qualification that is important for first-time home buyers looking for home financing loan. Mortgage lenders will review your debts to make sure that you aren’t taking on an excessive amount of debt that is additional the purchase of mortgage loan.
To achieve this, they look at one thing referred to as the debt-to-income ratio, or DTI. This might be basically an evaluation between your sum of money you make as well as the quantity you may spend on your recurring debts.
Right Here once again, there’s absolutely no single limit that is applicable over the mortgage industry that is entire. Lots of loan providers today set the club about 40per cent to 43per cent, when it comes to total ratio that is debt-to-income. Borrowers who possess compensating factors may 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” significantly more than 50percent of the earnings, it’s likely you have difficulty qualifying for a mortgage as a first-time buyer.
4. Documents, Documents, Documents
We just chatted on how lenders will validate earnings and financial obligation amounts. They are doing this by taking a look at your taxation records for the final year or two, bank statements, spend stubs, and much more. Expect you’ll offer these as well as other documents that are financial qualifying for a mortgage.
5. Minimal Down-Payment Demands
Down re payments are another essential dependence on first-time buyers. Until you work with a government-backed program, such as for instance a VA or USDA loan, you will likely have to make a deposit of some type.
The minimum down-payment requirement for qualifying for a mortgage loan may differ, according to the kind of mortgage getting used. Main-stream loans can require as low as 3% down in certain full cases, although some lenders may need 5%. The FHA real estate loan system permits for a deposit of 3.5% associated with the price or appraised value.
The good thing is that first-time house purchasers can buy advance payment funds from a third-party, such as for example a relative or friend that is close. Many home loan programs enable deposit gift ideas, which can be cash provided by a party that is third the debtor that is really purchasing the home.
The important caveat is the fact that cash must really be something special, and never a law that is interpersonal. In reality, the installment loans online direct lenders only hawaii individual supplying the funds will need to offer a present page too, which must suggest that they cannot expect any type or variety of payment.
So those are among the crucial factors whenever qualifying for a mortgage as a buyer that is first-time. Broadly speaking, borrowers seeking home financing loan require a decent credit history, a workable degree of financial obligation, and in some cases an advance payment.