Expands Home Possible® Sweat Equity Parameters
MCLEAN, Va., Nov. 19, 2018 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) announced today the expansion of its Home Possible® sweat equity parameters to allow borrowers to leverage their construction skills to cover down payment and closing costs when purchasing a home. The Home Possible sweat equity offering supports the renovation of aging homes and provides borrowers with an additional form of down payment instead of cash, particularly in rural areas. Borrowers can use sweat equity with no limits on the amount that can be applied to the down payment, provided the labor performed is completed in a skillful manner to support the appraised value—and is certified by an appraiser.
“More than 61 million Americans live, work and raise families in rural areas and other historically underserved communities,” said Mike Dawson, vice president of Single-Family Affordable Lending Strategy and Policy at Freddie Mac. “In rural America, many creditworthy families with low-to-moderate incomes face significant barriers to homeownership, especially obtaining the down payment. This offering will help them use their own construction skills to make up that difference, increasing the pool of mortgage-ready consumers.”
Freddie Mac is also giving borrowers the education, resources and training necessary to understand its parameters, in collaboration with the Federation of Appalachian Housing Enterprises (Fahe), Hope Enterprise Corporation (HOPE), Homeownership Education Resources Organization (HERO), Enterprise Community Partners, Community Development Corporation of Brownsville (CDCB), Next Steps and NextJob.
Through these collaborations, Freddie Mac is providing technical-assistance and training to help increase their capacity to offer homebuyer education, housing counseling, employment and re-employment services and related resources to families in Middle Appalachia, the Lower Mississippi Delta, the Colonias and Native Americans in Indian reservation areas.
“Lenders and borrowers in rural markets in high-needs areas face specific challenges,” said Nick Mitchell-Bennett, executive director, Community Development Corporation of Brownsville. “The enhancements Freddie Mac is making to its sweat equity paramenters are welcome and demonstrate the organzition’s efforts to address these specific challenges.”
The offering is part of Freddie Mac’s Duty to Serve plan, which focuses on the nation’s most persistent housing challenges in three historically underserved markets: manufactured housing, rural housing and affordable housing preservation. The plan pdf aligns with Freddie Mac’s community mission to stabilize communities, prevent foreclosures, responsibly expand credit, educate future borrowers, counsel current borrowers and build a better housing finance system.
About Freddie Mac
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMacand Freddie Mac’s blog.
MEDIA CONTACT: Chad Wandler