The Freddie Mac BorrowSmart program is designed to assist low- to moderate-income homebuyers by providing down payment and closing cost assistance. Here are some key points about the program:

• Purpose: BorrowSmart aims to make homeownership more accessible by reducing the financial burden of upfront costs for qualified buyers. It is not a loan but rather a form of assistance that does not need to be repaid.

• Eligibility:
  • Income: The assistance varies based on the buyer’s income compared to the Area Median Income (AMI). For example:
    • Borrowers with qualifying income less than or equal to 50% of the county AMI can receive up to $2,500.
    • Those with income between 50.01% and 80% AMI can get $1,250.
    • In some scenarios, those with income between 80.01% and 100% of AMI might qualify for $1,000 if the property is in a high-needs area.
  • Property Type: Assistance is typically for primary residences, which can include single-family homes, condos, planned unit developments (PUDs), and sometimes manufactured homes.

• Program Features:
  • Assistance Amount: Can be used towards either the down payment or closing costs, or a combination of both, up to certain limits based on income and property location.
  • Counseling Requirement: Borrowers must complete pre-purchase homebuyer counseling, which is often at a cost of about $99, to prepare for long-term homeownership.
  • Flexibility: The assistance can be combined with other eligible forms of down payment help like gifts or employer assistance programs.

• Loan Association: BorrowSmart is generally linked with Freddie Mac’s Home Possible® or HomeOne® mortgage products, which allow for low down payments, sometimes as low as 3%.

• Geographic Availability: The program is available in all states, but specific rules might apply, like not being available in Alaska or Hawaii for some lenders.

• Application: Start today and apply below! Tools like Freddie Mac’s Income and Property Eligibility Tool can help check if a property and income qualify for the program.

This program represents an opportunity for those who might find the down payment or closing costs prohibitive, offering a pathway to homeownership with less initial financial strain.