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Is Freddie Mac a loan servicer?

No. Freddie Mac does not make loans directly to homebuyers. Our primary business is to purchase loans from lenders to replenish their supply of funds so that they can make more mortgage loans to other borrowers.

What are the benefits of a Freddie Mac loan?

Flexible home loans backed by Freddie Mac: the Home Possible mortgage Only 3% down required. You can qualify for the program even without a credit score. Up to 30% of the borrower's income can come from rent, perhaps from a boarder or roommate. Investors are welcome. A lender can provide a gift to the borrower.

Why do banks sell loans to Freddie Mac?

By selling mortgages to companies such as Freddie Mac, lenders have the ability to continue making more home loans. Freddie Mac supports the secondary mortgage market by helping keep money flowing through the mortgage system, regardless of whether economic times are good or bad.

What is the purpose of Freddie Mac?

Freddie Mac was chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing. Our statutory mission is to provide liquidity, stability and affordability to the U.S. housing market. Learn more about our business and our role in the nation's housing market.

Why do banks sell mortgages to Freddie Mac?

By selling mortgages to companies such as Freddie Mac, lenders have the ability to continue making more home loans. Freddie Mac supports the secondary mortgage market by helping keep money flowing through the mortgage system, regardless of whether economic times are good or bad.

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