The Freddie Mac BorrowSmart℠ Program provides up to $2,500 in closing costs assistance.

Closing Costs Assistance for home

The large down payment is often the biggest barrier to homeownership, particularly for first-time buyers with little funds. Although, the Freddie Mac BorrowSmart℠ program may provide all the money you need to close on a home, provided that it takes a bite out of your down payment and closing costs assistance.

What information do you require about Freddie Mac’s BorrowSmart program?

Freddie Mac BorrowSmart program may provide up to $2,500 in down payment/closing costs assistance based on area median income (AMI) and other eligibility criteria. Besides, 100% of the funds required to close the deal may be covered.

However, the program in closing costs assistance may be used with single-family homes, condominiums, planned unit developments (PUDs). Also manufactured homes (not eligible for Home One).

Further, when applying for Freddie Mac BorrowSmart in closing costs assistance, then borrowers are assigned to one of three tiers based on their qualifying income.

Check your AMI and high-need area eligibility

There is no need to panic if you don’t know the AMI of your city immediately. Therefore, you can utilize the Freddie Mac Home Possible Income and Property Eligibility Tool to discover it.

Furthermore, if your income is above 80% of the AMI, then, you must also be in an eligible high-needs area. The ‘High-Needs Rural Tract’ will display ‘Yes’ if you are eligible. Otherwise ‘No’ if you are not eligible through the eligibility search tool too.

Therefore, the Home Possible Income Limit is listed if the property is eligible for Home Possible. Next, you will find out whether you fall within the 50%, 80%, or 100% income bracket based on the AMI.

Freddie Mac BorrowSmart program benefits homebuyers

Low-income homebuyers can benefit from Freddie Mac BorrowSmart closing costs assistance in several ways. First, the assistance may be used to fund up to 100% of the borrower’s required cash to close. Imagine buying a home with little to no down payment!

However, Even if it doesn’t cover all of the money required to close the deal, an earnest money deposit allows buyers to bring less money to the signing ceremony. Though, it leaves a bit more in your pocket for future repairs, mortgage payments, and emergencies.

Home Ownership

In addition to being mandatory, homebuyer counseling prepares buyers for sustainable long-term homeownership. However, a competitive housing market may be empowered by the closing costs assistance, resulting in more confidence and purchasing power.

Closing Cost Assistance for home

Qualification for Freddie Mac’s BorrowSmart Program

In addition, certain buyers are not eligible for Freddie Mac BorrowSmart program. In order to qualify for a 12% down payment conventional mortgage, then you must have an income level at or below 100% of the area median income. Next, narrow down the property type and purchase area (to the county and zip code level).

Furthermore, as of November 8, 2021, Freddie Mac BorrowSmart is available in all 50 states, except Hawaii and Alaska.

Time to get start with closing cost assistance

The Freddie Mac BorrowSmart program in closing costs assistance is an easy way to save money for future expenses or bring more money to the closing table for those who are eligible. Hence, you may even learn something during the home buying counseling session with one of our experts.

Hence, it is even better if this closing costs assistance is combined with gifts from family members and other down payment.

Closing Costs Assistance

For closing costs assistance Affiliated Mortgage completes a preliminary review of credit information before pre-approval. Then, you have supplied verifying documentation voluntarily. Hence, final loan approval is based on a full underwriting review of support materials. For example creditworthiness, assets, income information, and an adequate appraisal, not including applicants.
Thus, certain qualifications and restrictions apply. For example, eligibility is contingent on program stipulations, qualifying factors, income and debt-to-income (DTI) restrictions, and property limits.

About Affiliated Mortgage

Through our 23 states branch network, Affiliated Mortgage is a reputable mortgage company. Next, our corporate headquarters are situated in Rapid City, South Dakota. In addition to South Dakota, North Dakota, Arizona, Wyoming, Montana, Iowa, and Florida, we operate in over 23 states. So, we are here to assist you with all aspects of financing your home.

Finally, we are dedicated to simplifying the closing costs assistance process for our customers. Thus, we provide transparency and ease at all times. Therefore, our professionals assist our customers in obtaining the best possible mortgage rates. So, when you need a mortgage, there are a lot of issues to consider. Besides, our experts are available 24/7 to answer all of your questions and get the process started as quickly as possible.

Click here to check if you are eligible for Borrow Smart℠

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