Updates on Freddie Mac’s BorrowSmart℠ Program: Affordable Lending Enhancements

Towne Mortgage Company is pleased to inform our clients and partners about the latest updates to Freddie Mac’s BorrowSmart℠ program, aimed at enhancing affordable lending opportunities for eligible borrowers.

Low-Income Purchase (LIP) Credit Extension

Effective June 1st, 2024, the Freddie Mac BorrowSmart℠ program has extended the Low-Income Purchase (LIP) credit, increasing it from $500 to $1250. This credit is available to qualifying borrowers whose income ranges from greater than 50% to 80% of the area median income (AMI). It provides a valuable incentive to facilitate homeownership for low-income households.

Moderate Income Purchase (MIP) Credit Update

Please note that the Freddie Mac BorrowSmart℠ Moderate Income Purchase (MIP) credit, previously set at $1000, will no longer be offered. Borrowers intending to utilize the MIP credit must complete HPF counseling on or before July 31st, 2024, and ensure that their loans fund on or before September 30th , 2024.

It’s important to highlight that the Freddie Mac BorrowSmart℠ credit is not available for Mini Correspondent and Delegated Clients.

Freddie Mac BorrowSmart℠ program is only available in conjunction with specific conventional conforming financing programs, for primary residences. Pre-purchase homebuyer counseling required.

Very Low-Income Purchase (VLIP) Credit for Home Possible or HomeReady Loans

For borrowers with qualifying income less than or equal to 50% of the Area Median Income (AMI), Towne Mortgage is pleased to offer a Very Low-Income Purchase (VLIP) credit. This lender credit of $2500 is available across all channels and is applied as a loan level pricing adjustment upon underwriting approval. The credit will be applied directly towards down payment, closing costs, including escrows, and mortgage insurance premiums.

Learn More

For more information on how these updates may benefit you or your clients, please contact Towne Mortgage or visit our website. We are here to assist you in navigating these enhancements and finding the right financing options tailored to your specific needs.

Disclaimer:

Freddie Mac BorrowSmart℠ program is available in all states. Freddie Mac BorrowSmart℠ is available as a Wholesale transaction only and until Towne’s annual loan allotment from Freddie Mac is exhausted. Only available in conjunction with specific conventional conforming financing programs, for primary residences. Pre-purchase homebuyer counseling required. Down payment/closing cost assistance amounts of $500, $1000 or $1,500 based on Area Median Income and other eligibility criteria. *Available in all states Towne Mortgage is licensed to originate mortgage loans. Towne is licensed to originate loans in all states except AK, HI, ID, NM, NY.

Programs available only to qualified borrowers. Programs subject to change without notice. Underwriting terms and conditions apply. Some restrictions may apply. The information provided in this flyer is for the dissemination to and for the use of real estate and financial business entities only and is not an advertisement for the extension of credit to consumers. AZ License #0942579; CA License #41DBO-45117. Licensed by the Department of Financial Protection and Innovation (DFPI) under the California Residential Mortgage Lending Act.; GA License #12701; IL License #MB.6760710; MA Mortgage Lender License # ML3028.; Licensed by the N.J. Department of Banking and Insurance.; Rhode Island Licensed Lender. REV02182024