Mortgage servicer Guaranteed Rate is expanding its Fannie Mae and Freddie Mac-backed mortgage products. The company cites this move as demonstrating its “proven commitment to supporting housing affordability.”
The HomeReady (offered by Fannie Mae) and Home Possible (administered by Freddie Mac) mortgage grant programs offer a $2,500 non-repayable grant. The grants are part of a national housing affordability initiative launched by Fannie Mae and Freddie Mac to assist borrowers with an income under 80% of the Area Median Income (AMI), calculated county-by-county on an annual basis by the Department of Housing and Urban Development.
The public grants can be combined with Guaranteed Rate’s OneDown grant program, which provides either 2% of the loan amount or $2,000. The grant also includes lender credits of up to $1,000, resulting in a total assistance of $5,500. Qualifying borrowers receive both reduced mortgage insurance costs and rates. OneDown also empowers qualified borrowers to make a down payment as low as 1%.
According to Kate Amor, senior vice president, head of enterprise products for Guaranteed Rate, the combination of OneDown and the HomeReady/Home Possible grants is the latest initiative in the company’s effort to make housing more affordable at a time when for many, it is not.
“We’ve said repeatedly that Guaranteed Rate is all-in when it comes to supporting the dream of responsible homeownership across the homebuying spectrum,” added Amor. “Offerings like OneDown demonstrate our continued support towards the communities we serve and our deep commitment to affordable housing.”
For more information, visit https://www.rate.com/.
