Freddie to Stop Allowing Lender-Paid DPA

The Federal Home Loan Mortgage Corp. is eliminating grants and gifts from home lenders as an eligible source of down payments on its program for lower-income borrowers.

Freddie Mac’s Home Possible Mortgages are designed to provide financing for low- and moderate-income borrowers through low down payments and flexible sources of funds.

Currently, the McLean, Virginia-based organization allows the borrower to utilize gifts and grants from the lender as an eligible source of funds on Home Possible Mortgages.


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From:: Financing

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