Before Freddie Mac homes, home ownership is only a dream for low-income individuals. The high cost of down payment and high interest rates offered by regular lending companies and banks is enough to put off anyone who does not have a very high salary. Freddie Mac has eased up the mortgage market and enabled lenders to offer flexible terms for home loans and down payments.
There are some measures however on how a person may be able to acquire Freddie Mac homes or other government housing assistance projects. The more important thing to determine is one’s credit score. Your credit score will indicate whether you are eligible for any form of housing loans including those subsidized by the government. Some documents that may be required can include tax returns, income statements, pay slips, bank deposits, your social security identification and others.
You may approach any lender to inquire about these government assistance programs and grants. Freddie Mac has a widely operated program called Home Steps which aims to insure installations made by the buyer of the foreclosed property. It also provides a grant to reduce the total price of the property and some more for the closing costs.
There is a big network of banks and other lending institutions providing loans that are guaranteed by the Federal Housing Administration (FHA) an agency operating under the purview of the U.S. Department of Housing and Urban Development. A loan secured by the FHA will only require buyers to give a down payment for as low as 3.5 percent of the property’s total price. FHA guarantees likewise allow home buyers to source funding for their down payment from other resources. Military personnel and veterans can apply for loan eligibility with the Veterans Affairs office.
Freddie Mac homes and other government assistance programs have been successfully availed by many home buyers in the past and there is no reason why you should not apply for them as well.