Freddie Mac

Freddie Mac

The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, is a government-sponsored enterprise (GSE) that plays a crucial role in the U.S. housing market by purchasing mortgages from lending institutions. This process helps to expand the secondary real estate market.

By buying mortgages from banks and other lenders, Freddie Mac increases the liquidity in the housing market, making more funds available for home purchases. After acquiring a significant number of mortgages, Freddie Mac either holds these loans or packages them into mortgage-backed securities (MBS), which are then sold to public investors on the open market.

Freddie Mac was established by Congress with the objective of stimulating the real estate market and enhancing the availability of mortgage financing. The organization is regulated by the Federal Housing Finance Agency (FHFA) to ensure it meets its mission, and it also adheres to regulations set forth by the U.S. Department of Housing and Urban Development (HUD). Through its activities, Freddie Mac contributes to the stability and accessibility of homeownership in the United States.

Single Family Home

A single-family home is an unattached dwelling. For an FHA loan, it must be owner-occupied, meaning the borrower intends to use it as their primary residence.

Eligibility

To qualify for an FHA mortgage or refinance, you must meet certain borrower criteria. The FHA program offers significant flexibility for eligibility.

Property Tax

Property taxes are paid to the local government where your house is located. The amount varies based on the area and property type.

First-Time Homebuyer

U.S. Department of Housing and Urban Development (HUD) sets criteria to define first-time homebuyers. Helps lenders identify and allows to track their numbers.

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