Securing a Freddie Mac loan may seem like a daunting task, but it really isn’t that difficult. Like any other loan, it requires a certain set of qualifications that you need to meet. Here are some of the main requirements for getting a Freddie Mac loan:
Debt-to-Income (DTI) ratio: Freddie Mac requires a DTI ratio of up to 43% in most instances, but in certain cases, it can go up to 50%. This means that your monthly debt payments should not exceed 43% or 50% of your monthly income.
Credit Score: While some lenders require a higher credit score, Freddie Mac requires a score of at least 600 in most cases. However, if you want a better interest rate, a score of at least 620 is preferred.
Down Payment: One of the best things about a Freddie Mac loan is that it allows for a down payment as low as 3%. This means that you can finance up to 97% of the home’s value.
Credit Derogatory Factors: To qualify for a Freddie Mac loan, you must not have any significant credit derogatory factors such as foreclosure, short sale, bankruptcy, or repossession in the last 7 years.
In conclusion, getting a Freddie Mac loan is not as difficult as it seems. As long as you meet the qualifications mentioned above, you should be able to secure a loan without any issues. It’s always a good idea to do your research and work with a trusted lender to ensure that you get the best loan for your needs.