Freddie Eases Policy on Employer Housing Aid

Freddie Mac is extending to all its mortgage products the benefits of using employer financial assistance as a source of funds.Freddie Mac said its new Employer Assisted Homeownership Benefits policy is expected to make 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 affordable mortgage products, such as Freddie Mac's Home Possible mortgages. Freddie said the change is expected to help more borrowers take advantage of an array of financial benefits offered by employers, including grants, unsecured loans, and secured secondary financing that can supplement a downpayment, closing costs, financing costs, or pre-paids and escrows. The new policy was crafted so lenders and employers with housing benefit programs can help more working families achieve homeownership with Freddie Mac mortgage products regardless of borrower income or the location of the property, the government-sponsored enterprise said. Now, secured and unsecured loans from employers can be used as a source of funds for a part of the downpayments and for closing costs, escrows/prepaids, and financing costs. Freddie Mac can be found online at http://www.freddiemac.com.