Homesteps, the REO Division of Freddie Mac, offers a special financing program on some of its properties. This is some general information on the program.
[Information as of 8/29/2005]
- Loans are made through Freddie Mac’s lender partners as Freddie Mac does not make direct loans.
- Special Financing is not offered on all properties.
- Special Financing is only offered on properties in habitable condition.
- Special Financing is available to owner-occupant and investor purchasers, though on different terms.
- Rates change each Thursday. Current rates are available by calling 888-882-6276.
- Minimum down payments are 5% for owner-occupants and 2% may be from gift funds.
What are the advantages to Homesteps Special Financing?
- Lower closing costs
- No junk fees
- No processing fee
- No PMI (lower monthly payment).
- No appraisal (quicker closing and lower cost)
- 30 day closing
- Higher allowable debt ratios (You can afford more house)
- Competitive interest rate (approximately 1/4 percent below the average retail rate)
Sample savings compared to FHA and Conventional financing at the same interest rate show annual savings on monthly payments with HomeSteps of $661.08 versus FHA and $741.00 versus conventional on a $100,000 mortgage. Sample closing cost savings were $2,390.00 versus FHA and $1,187.00 versus conventional mortgage.
This is not an offer to extend credit. We are not affiliated with Freddie Mac or Homesteps and this information is provided for educational, news and informational purposes only.
