They are both well-known in the economic world as Government Sponsored Enterprises, or GSE for short, and since they have some pretty impressive loan products out right now I should get to know them.

Today, I introduce you to a Freddie Mac program that I am particularly fond of.

FIRST, SOME FLASHBACKS ABOUT FREDDIE MAC

Freddie Mac refers to Federal Home Loan Mortgage Corporation. Both of them were created by Congress, Fannie in 1938 and Freddie in 1970.

What is their task, in a nutshell, is to purchase mortgages from lenders and either hang on to them or bundle them into what are known as “mortgage-backed securities” which are then sold to investors.

Their most significant function, at least for consumers, is that the money they spend purchasing these mortgages is then used by the lender to get more loans. In essence, they ensure that there is no breakdown in the supply of mortgage money.

We have real estate courses for every career choice so that you can steal the real estate show. See these courses and all of our student resources to begin expanding your real estate skills today.

A HOUSE IS POSSIBLE, EVEN WITH A LOW EARNING

The Freddie Mac Home Possible® mortgage enables “…very low to low-income borrowers fulfill the dream of owning a home,” according to the GSE’s website.

Our best feature of the product is the down payment—as little as 3%. But there is much more:

• The down payment funds can be accompanied with a variety of sources.For example gifts, a second mortgage or grants.
• Co-borrowers who do not live in the house are included (on the purchase of a one-unit residence).
• Yes,surely I can have another financed property and still you can qualify.

I need to purchase private mortgage insurance (PMI) unless I put 20 percent of the loan amount down.

Unlike the FHA-backed loan where the mortgage insurance remains in place for the life of the loan, once my Home Possible loan balance falls lower than 80% of the home’s appraised value and “… cancellation criteria are met,” I can definitely cancel the PMI.

Are you ready to land on perfect real estate courses? Register now for our comprehensive and convenient online Illinois state-approved coursework. When you bundle the coursework with exam prep tools, not only will you save money, you’ll save yourself stress and hassle.

HOW TO QUALIFY

I have to meet the lender’s credit score requirements (typically 680, although I may qualify with a lower score). My earnings must not exceed 2021 area median income (AMI) limits. I’ll also need proof of funds for the down payment and closing costs.

Furthermore, I can find your area’s 2021 AMI at FannieMae.

If this is my first home, I’ll also require to attend a homebuyer education course.

If all of this sounds exciting to you, you’re probably ready to pursue a career as a real estate agent! Our team at Illinois Brokers Academy is here to help you with our real estate courses for any real estate career you want.

To apply, do contact a mortgage lender and let him or her know if you are interested in the Home Possible mortgage. While I am not a mortgage expert, I am glad to refer you to someone I know and trust. Just give me a call!