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SECONDARY MARKETS Freddie Mac to lower down payment hurdles for some loans in November

By Bonnie Sinnock September 03, 2021, 4:05 p.m. EDT 1 Min Read




Freddie Mac on Nov. 15 will lower down payment requirements on primary residences for borrowers with incomes up to 80% of the area median who are taking out mortgages secured by 2-4 unit properties. Additionally, Freddie will ease guidelines for manufactured housing lending.


For 2-4 unit homes, maximum loan-to-value ratios have been limited to 85% unless second lien products that have been difficult to obtain in the private market were taken out, in which case the total LTV limit has been 95%. The change increases the limit to as high as 105% for borrowers getting down payment assistance from a subsidized source such as a state housing agency while ensuring that, at a minimum, borrowers must contribute funds equal to at least 3% of the loan amount. Borrowers without subsidized down payment assistance will have a maximum 95% LTV after the new requirements go into effect.


See the full article.


https://www.nationalmortgagenews.com/news/freddie-mac-to-lower-down-payment-hurdles-for-some-loans-in-november?position=editorial_1&campaignname=V2_NMN_Daily_2021-09072021&utm_source=newsletter&utm_medium=email&utm_campaign=V2_NMN_Daily_2021%2B%27-%27%2B09072021&bt_ee=cSAU7W6zPThr8KJR48r%2FK8k3EZ73dGMuirXkoK61IVXQeSADn%2BrHjGX6jV7RA7ua&bt_ts=1631009064308

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