Freddie Mac plans to offer at least $3 billion in single-family affordable housing bonds to support affordable homeownership and serve historically underserved markets, according to a press release.
To underscore this effort, the company is offering approximately $285 million in Uniform Mortgage-Backed Securities backed by loans purchased through its Home Possible program.
“Freddie Mac is committed to creating additional opportunities for families to access quality housing, and today we are announcing a major action in support of that goal,” said Michael DeVito, CEO of Freddie Mac. “Through this new, multi-billion-dollar affordable housing bond program, we are providing focused liquidity, stability and affordability designed to bring sustainable homeownership opportunities to lower-income borrowers across the country. This is also intended to give investors a vehicle to invest in underserved communities.”
Freddie Mac’s Home Possible mortgage requires a down payment of 3%, helping low-income home buyers overcome the most significant barrier to homeownership: affording a down payment. Home Possible mortgages are only available to families with income at or below 80% of area median income.
Home Possible mortgage borrowers also receive lower mortgage insurance coverage requirements, reduced credit fees, flexible sources of down payments and education and counseling on responsible homeownership.
Freddie Mac purchased over 81,000 Home Possible mortgages in the first six months of 2021. The company has made homeownership possible for more than 623,000 families through $121 billion in Home Possible mortgages since 2015.