Freddie Mac applies employer assistance to mortgage productsMortgagePress.comFreddie Mac, employer financial assistance
Freddie Mac has
extended employer financial assistance as a source of funds to all
of its mortgage products, thereby making tens of millions of
dollars in additional conventional mortgages available to working
families across the country. Previously, these benefits could only
be used with the company's mortgage products.
Freddie Mac's new Employer Assisted Homeownership Benefits
Policy will help more borrowers take advantage of different types
of financial benefits employers may offerincluding grants,
unsecured loans or secured secondary financingthat can supplement a
down payment, closing costs, financing costs, or pre-paids and
escrows.
With unsecured loans and secured secondary financing from
employers, borrowers can exclude the debt payments on the employer
loans from their monthly housing expense-to-income or debt
payment-to-income ratios if the loan repayments are delayed for
five years, or the loan is only repaid upon sale or in case of
default.
A key feature of Freddie Mac's new policy allows employers the
flexibility to require repayment of the loan in full if the
borrower terminates employment. However, the employer must allow
the borrower to continue repaying the loan in the event of
long-term disability or his or her job's elimination through a
reorganization or reduction in force.
Headquartered in McLean, Va., Freddie Mac is a stockholder-owned
corporation that keeps money flowing to mortgage lenders. For more
information, call (703) 903-2000 or visit www.freddiemac.com.
