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 house purchasers generally have a complete lot of questions regarding the home loan approval process. Probably one of the most typical concerns we have from our visitors is: which are the steps in qualifying for a mortgage as being a buyer that is first-time? And do you know the minimum certification requirements to get a very first home mortgage? Here’s what you should understand.
Just how to be eligible for A home Loan as a First-Time Buyer
Lenders check many different facets whenever loan that is considering. Earnings, fico scores, financial obligation ratios, and advance payment funds are among the most key elements for first-time buyers qualifying for a mortgage. Therefore let’s speak about every one.
1. Credit Rating Demands
Credit ratings are probably the most qualification that is important for a mortgage. That is true for first-time and buyers that are repeat.
Fico scores are three-digit figures that basically show the way you have actually lent and repaid cash in the past. They truly are computed immediately by sophisticated algorithms which use information discovered within a credit that is person’s. The FIFO credit scoring model may be the one most frequently employed by mortgage brokers. So that it’s generally the one that counts many, in terms of qualifying for a mortgage being a first-time customer.
Minimal credit-score demands may differ in one mortgage system to another location. The FHA loan system is one of the most lenient, with regards to credit criteria. First-time house purchasers whom utilize an FHA loan will need to have a credit score of at the least 580, when they desire to make use of the 3.5% advance payment choice.
Traditional mortgage loans (that are not insured or assured by the government) typically have greater credit score needs. To be eligible for a traditional loan, first-time house purchasers might need a credit rating of 600 or more. That quantity is certainly not always written in stone, however it does signify a common cutoff point employed by mortgage brokers. Some set the club also greater at around 620. It may differ.
The end result is that a greater credit rating shall help you whenever qualifying for a mortgage as a first-time customer. It might additionally assist you to secure a lower life expectancy home loan rate, that could help you save money as time passes.
2. Basic Money Demands
Your earnings degree may also influence your capability to be eligible for a mortgage loan as being a buyer that is first-time. This might be real for repeat buyers too.
For apparent reasons, mortgage brokers desire to make sure that you have actually adequate earnings to settle your house loan responsibility.
3. Debt-to-income Ratios
Home financial obligation is yet another essential certification requirement for first-time house purchasers searching for a home loan loan. Mortgage brokers will review your present debts to ensure you aren’t dealing with way too much extra debt with the purchase of mortgage loan.
For this, they appear at something referred to as the debt-to-income ratio, or DTI. This is certainly fundamentally a comparison between your amount of cash you get therefore the quantity you spend on the debts that are recurring.
Right right Here once again, there’s no single limit that is applicable over the entire home loan industry. Lots of lenders today set the club around 40percent to 43per cent, when it comes to total ratio that is debt-to-income. Borrowers that have compensating factors may be permitted to have total DTI since high as 50%. It differs.
The conclusion let me reveal that when your combined month-to-month debts “soak up” significantly more than 50percent of one’s earnings, it’s likely you have difficulty qualifying for a mortgage as being a first-time customer.
4. Papers, Documents, Papers
We simply chatted exactly how mortgage brokers will validate debt and income amounts. They are doing this by taking a look at your income tax records for the couple that is last hawaii installment loan consolidation of, 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 payments are another requirement that is important first-time purchasers. You will probably have to make a down payment of some kind unless you use a government-backed program, such as a VA or USDA loan.
The minimum down-payment requirement for qualifying for a true mortgage loan may differ, with respect to the sort of home loan getting used. Main-stream loans can need less than 3% down in certain full instances, although some loan providers may need 5%. The FHA home loan system allows for the payment that is down of% associated with purchase price or appraised value.
The good thing is that first-time home purchasers can buy advance payment funds from a third-party, such as for instance a member of family or friend that is close. Many home loan programs enable advance payment gifts, that will be cash written by a party that is third the borrower that is really purchasing the house.
The essential caveat is the fact that the cash must undoubtedly be a present, and never a law that is interpersonal. In reality, the individual supplying the funds will need to provide something special letter also, which must suggest that they don’t expect any type or types of payment.
So those are associated with the essential factors when qualifying for a mortgage as being a buyer that is first-time. Most of the time, borrowers looking for a mortgage loan desire a credit that is decent, a workable degree of debt, and in many cases a advance payment.
