Freddie Mac FHLMC — Conventional Loans
What is Freddie Mac, FHLMC?
Federal Home Loan Mortgage Corp (FHLMC), commonly known as Freddie Mac, is a stockholder-owned government sponsored entity (GSE) chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing for middle-income Americans. Freddie Mac, purchases, guarantees and securitizes mortgages to form mortgage backed securities. Loans secured by Freddie Mac are conventional home loans.
This type of home loan can be made to purchase or refinance homes with a first mortgage or second mortgage on single family to four family homes.
In general, the Freddie Mac single family, first mortgage conforming loan limit is $484,350. This is an increase from $453,100 in 2018. The new ceiling loan limit for one-unit properties in most high-cost areas is $726,525 — or 150 percent of $484,350. This limit is reviewed annually and, if needed, changed to reflect changes in the national average price for single family homes. The current loan limit applies to all conventional mortgages delivered after January 1, 2019.
Loans which are larger than the conforming loan limits are called jumbo loans. Because jumbo loans are not funded by GSEs like Freddie Mac, they usually carry a higher interest rate and some additional and more stringent underwriting requirements by the lender, like a credit score of at least 700 and a debt to income ratio of no more than 43% but preferably 36%, among other requirements.
In addition to common loan structures such as fixed rate mortgages, adjustable rate mortgages (ARM) and balloon loans, Freddie Mac also has conforming loan requirements for high balance loans and high LTV refinance options.
Bankers Group conventional home loan programs include: first mortgages, second mortgages, adjustable rate loans and 15 fixed rate loans and 30-year fixed and 40-year amortization loans, high balance loans and high LTV refi options.
For a conventional home loans package, rates and terms, loan to values and underwriting guidelines, contact Dorothy Reik directly at 310-291-1300, CalBRE Lic #01233829, NMLS Bankers Group ID #294230 (B&P 10140.6(b); Regulation 2773).
Bankers Group Woodland Hills office is located at 5311 Topanga Canyon Blvd Suite 201, Woodland Hills, CA 91364.
About Freddie Mac
The Federal Home Loan Mortgage Corp (FHLMC), or Freddie Mac, is a stockholder-owned, government-sponsored enterprise (GSE) chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing for middle-income Americans. Freddie Mac purchases, guarantees and securitizes mortgages to form mortgage-backed securities.
Freddie Mac is not a loan originator, not does it provide mortgages to borrowers. Freddie Mac was created when Congress passed the Emergency Home Finance Act in 1970. This was done in an attempt to expand the secondary mortgage market while reducing interest rate risk for banks. In 1989, Freddie Mac underwent a reorganization and was turned into a shareholder-owned company, now under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
As mentioned above, Freddie Mac is a GSE, which is a financial service corporation created by Congress in order to enhance the flow of credit to different parts of the economy. Nearly 80% of residential mortgages in America are backed by Freddie Mac and another, similar GSE known as Fannie Mae. These GSEs do not originate or service mortgages, but instead buy loans from mortgage lenders. After purchasing a large number of these mortgages, they combine and sell them as mortgage-backed securities, which tend to be very liquid and carry a credit rating close to that of U.S. Treasuries. This process frees up mortgage lender capital, which means they can lend that same money again.
Conventional Home Loan Applications
Bankers Group works in the greater Los Angeles area: Topanga, Woodland Hills, Malibu, Pacific Palisades, West Hills, Encino, Santa Monica, Beverly Hills, Los Angeles, West Hollywood, Van Nuys, and Burbank.
For a quote or a conventional home loans package, rates and terms, loan to values and underwriting guidelines, contact Dorothy Reik directly at 310-291-1300, CalBRE Lic #01233829, NMLS Bankers Group ID #294230 (B&P 10140.6(b); Regulation 2773).
Bankers Group Woodland Hills office is located at 5311 Topanga Canyon Blvd Suite 201, Woodland Hills, CA 91364.