Monday, March 10, 2014

Freddie Mac's Program for Home Buyers

We have written about Fannie Mae's program of setting aside foreclosed homes for individuals who want to buy homes for a short while, away from the purchasing power of investors via Homepath.  Its sister organization Freddie Mac has a similar program called Homesteps.

Like Homepath, you can search for Freddie Mac-owned homes by location and features, such as numbers of bedrooms and baths.  Homes are kept away from purchase by investors for 20 days (30 in Nevada) so that people buying their own residence can have first crack at them.  Besides that, Freddie offers some finance options, such as only 5% downpayment and no requirement of mortgage insurance in several states, and spreading to more in the near future.  However, you don't need to buy a Freddie Mac house through their financing--you can use any other financing you wish.  Here's a list of states currently offering the Freddie Mac financing and a list of lenders. 

However, if you are a first-time home buyer, you might want to check with your state housing agency to find a first-time home buyer program that could be even better.

There are some other benefits thrown in, including a cash incentive for condos and home warrenties.

For more information, call the Freddie Mac hotline at  800-972-7555.

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