Freddie Mac Fixed-Income Mortgage Guidelines

This guide covers Freddie Mac Fixed-Income Mortgage Guidelines. There are specific rules and regulations for fixed-income borrowers per Freddie Mac Fixed-Income Mortgage Guidelines. Freddie Mac always updates its guidelines, just like Fannie Mae and HUD. Recently, Freddie Mac updated documentation requirements for social security income. Dustin Dumestre, President and CEO of F1 Lenders, a DBA of NEXA Mortgage, and an associate contributing editor at GCA Forums, says the following about Freddie Mae Fixed-Income Mortgage Guidelines:

The recent Freddie Mac updates on fixed-income will make it easier for the borrower. We can now accept the Social Security Awards letter OR the most recent 60-day bank statements showing the Social Security direct deposits.

In the past, we would need BOTH the Social Security Award letter and 60 days of bank statements reflecting the Social Security deposit deposits. Freddie Mac is changing with the times to make the loan process easier for individuals who receive Social Security income. This change may not seem dramatic, but it is a step in the right direction. This article will cover and discuss Freddie Mac Fixed-Income Mortgage Guidelines on Conventional Loans.

Benefits of Freddie Mac Fixed-Income Mortgage Guidelines 0n Conventional Loans

HUD, VA, USDA, Fannie Mae, and Freddie Mac always look for ways to improve the mortgage process. As mortgage professionals, documentation is part of our day-to-day lives. We do not ask for documentation just for fun. There are very specific guidelines on what we must document from a borrower. The mortgage process has a very strict documentation policy. So we smile anytime we see a major player such as Freddie Mac remove documentation!

Freddie Mac Fixed-Income Mortgage Guidelines on Grossing Social Security Income

If you receive social security income, please remember the fact that you can gross up your monthly benefit amount by up to 125% for mortgage qualification purposes. If you are not required to pay income tax on your social security income, you are allowed to gross up the amount you receive. See below for maximum gross-up amounts:

Fannie Mae and Freddie Mac allow grossing up 125% for conventional financing for fixed-income borrowers on social security
HUD, the parent of FHA, allows fixed-income borrowers to gross up 115% of their social security income
VA Loans allows borrowers to gross up 115% of their social security fixed-income

Clearly, conventional loans permitting 125% grossing up on social security and other non-taxable fixed-income is a great advantage for mortgage borrowers.

Documents Required To Start Mortgage Process

What other documentation will you need to start the mortgage process?

Last 60 Days Bank Statements – needs to show direct deposits for fixed-income
OR – Social Security Awards Letter
Driver’s License
Current mortgage statement (if a refinance)
Homeowner’s Insurance Agent Information

Fixed-income has always been the easiest income to verify, and it just became even easier with Freddie Mac. To talk with a mortgage professional from GCA FORUMS Mortgage Group, call Mike Gracz on (800) 900-8569. Or text us for a faster response. Or send an email to gcho@gustancho.com.

One-Stop Mortgage Solutions For Owner-Occupant Homes, Second Homes, And Investment Property Financing

We can go over your specific mortgage qualifications based on your Social Security benefits. The team at GCA Forums Mortgage Group is available 7 days a week, evenings, weekends, and holidays. The team at GCA Forums Mortgage Group is always looking forward to answering any questions you may have. Whether you are looking to downsize from your current home, moving to a larger home, or refinance your current property, we are here to make the process easy and streamlined! GCA Forums Mortgage Group has a national reputation of being a one-stop mortgage shop. Besides having no lender overlays on government and conventional loans, we offer dozens of different non-QM mortgage loan programs. If there is a non-QM and/or alternative financing loan program in the market, you can be rest assured GCA FORUMS Mortgage Group has it.

Frequently Asked Questions on Freddie Mac Fixed-Income Mortgage Guidelines

Here’s a list of frequently asked questions (FAQs) regarding Freddie Mac’s fixed-income mortgage guidelines that can help potential borrowers understand the program better:

FAQs on Freddie Mac Fixed-Income Mortgage Guidelines

This is a comprehensive list of the most frequently asked questions (FAQs) that potential borrowers might be asking regarding the Freddie Mac Fixed-Income Mortgage Program:

FAQs on Freddie Mac Fixed-Income Mortgage

Is There Any Documentation Required For a Freddie Mac Fixed-Income Mortgage?

Yes, certain documents are required to receive a Freddie Mac fixed-income mortgage. These include a social security number, proof of legal residency, and the completion of a credit report as provided by a recognized credit agency.

Who is Qualified To Get a Freddie Mac Fixed-Income Mortgage?

To get a Fixed-Income Mortgage, a borrower must provide evidence of a minimal credit score, an income level, and a certain DTI ratio. The minimum credit score would have to be 620; however, a better credit score would lead to a better deal.

What Types of Properties Are Qualified Under The Freddie Mac Fixed-Income Guidelines?

The guidelines include specific criteria based on property type. Still, you can apply for a fixed-income mortgage to buy a primary residence, a second home, or an investment opportunity.

How Much is The Highest Amount That Can Be Loaned?

The location of the single-family home determines the loan limit placed on it, as the Federal Housing Finance Agency sets the parameters for the limit, which is stretched annually.

How Much Is Needed For The Down Payment?

Qualified people interested in particular divisions and programs, such as Home Possible, can borrow as low as a 3% down payment from Freddie Mac, which offers low—to moderate-income borrowings.

Are There Any Income Requirements For a Freddie Mac Fixed-Income Mortgage?

Some programs limit the borrowers’ income levels, such as Home Possible, which is based on the local county median amount. However, several other products or packages do not limit the income earned by the borrower.

What Documents Are Needed To Complete The Mortgage Application?

Assets, income proof, employment verification, and past credit history are the most common documents borrowers must possess; in some cases, more documents can be necessary.

Can I Get a Mortgage Refinancing With a Freddie Mac Fixed-Income Mortgage?

Freddie Mac offers several refinance options, including the Relief Refinance Mortgage, which allows people to refinance without getting an appraisal. Qualifying borrowers are not required to make a new appraisal but are evaluated based on their costs.

What Are The Policy Requirements for Mortgage Insurance?

Those with a down payment between 50000 and 60000 must pay for private mortgage insurance, while some loans do not include this, for not being lower than 20%.

How Does Freddie Mac Promote Affordable Housing Options?

Part of its overall aim to achieve housing affordability includes:

Programs that allow a low downpayment.
Reduced credit constraints.
Specific programs for low- to moderate-income household borrowers.

What are some of the advantages Of Freddie Mac Fixed-Income Mortgage?

Some advantages are attractive interest rates, monthly payments that do not change, and programs that assist borrowers. Freddie Mac has programs that help first-time home buyers.

Where Can I Find a Supplier to Provide a Freddie Mac Fixed-Income Mortgage?

You can visit the Freddie Mac site directly to learn more about approved lenders. Furthermore, many mortgage brokers and local banks also sell Freddie Mac’s products.

Grasping the details of the mortgage policies of fixed-income securities at Freddie Mac should assist prospective borrowers in making reasonable choices regarding their mortgage options. Knowing the requirements, advantages, and available programs will make purchasing a house easier for borrowers. On a more personalized issue about your concerns, getting in touch with an expert dealing with these loans will be helpful.