Unveiling Fannie Mae's HomeReady SPCP and
Freddie Mac's BorrowSmart Programs for Aspiring Homeowners
As a dedicated Realtor with nearly a decade of experience, my goal is to guide you through the journey of homeownership and help you find your dream home. Navigating through the plethora of financial aid options available to first-time homebuyers can be overwhelming. Hence, I want to bring your attention to two significant mortgage assistance programs: the Fannie Mae HomeReady Special Purpose Credit Program (SPCP) and the Freddie Mac BorrowSmart Program.
Fannie Mae’s HomeReady Special Purpose Credit Program (SPCP)
Fannie Mae’s HomeReady SPCP is a unique program crafted based on where a prospective buyer’s current residence is located. It offers several benefits to first-time homebuyers, including a $5,000 grant, up to $500 towards a one-year home warranty, and up to $500 for appraisal costs.
To be eligible, your current primary residence must be located in an eligible census tract within the following Metropolitan Statistical Areas: Detroit, MI, Baltimore, MD, Chicago, IL, Atlanta, GA, Memphis, TN, or Philadelphia, PA.
Freddie Mac’s BorrowSmart Program
On the other hand, Freddie Mac’s BorrowSmart Program is designed to facilitate homeownership in eligible Geo Tracts. Not limited to first-time buyers, this program can offer substantial benefits.
Qualified buyers can receive up to $10,000 towards their down payment or closing costs. This program requires a 620+ FICO score, supports up to 97% Loan to Value (LTV), and is eligible for primary purchases only. Additionally, at least one borrower will need to complete a homebuyer counseling session through the Homeownership Preservation Foundation (HPF) Process.
Furthermore, depending on your income level, there are varying degrees of financial assistance available. If you’re a first-time homebuyer in Detroit, MI, you might also be eligible for an additional sum through the BorrowSmart Geo-Target.
The BorrowSmart Program applies to single- and multi-wide manufactured homes, condos, and Planned Unit Developments (PUDs), with lender- and seller-paid Temporary Rate Buydowns available.
In the ever-changing world of real estate, getting pre-approved for a mortgage is a vital first step. If you need assistance with the pre-approval process or have further questions about these programs, don’t hesitate to reach out to my trusted mortgage contact, Steve Frost at National Mortgage Funding, at 248-875-8767.
And once you’re ready to begin the journey to homeownership, give me, Marvin Morrison, a call at 248-909-5182. I’m here to ensure your transition from prospective buyer to proud homeowner is as seamless as possible.