Freddie Mac brings a new resource for home buyers online
Borrower education stands as a barrier to homeownership for younger consumers and Freddie Mac is trying to change that.
The government-sponsored enterprise on Monday launched CreditSmart Homebuyer U — a free, comprehensive online resource to walk people through the homebuying cycle. Freddie Mac broke out the course into six learning modules, spanning everything from saving, to securing a loan, to purchasing a house and homeownership preservation.
"Becoming a homeowner is an important responsibility and Freddie Mac is committed to providing the tools and resources to ensure a successful path toward sustainable homeownership," Danny Gardner, Freddie Mac's senior vice president of single-family affordable lending and access to credit, said in a press release. "The goal of this exceptional program is to empower those who are pursuing the dream of homeownership with knowledge to make informed, responsible decisions."
Teaching potential borrowers about different types of mortgages as well as dispelling any outdated beliefs can pay major dividends for lenders.
A Freddie Mac survey from November showed 86% of Gen Zers want to become homeowners at some point in their lives. However, 65% said they lack confidence in their knowledge of the mortgage process and 25% claim buying a home is out of financial reach. It further revealed the need for better educating consumers.
"This survey data also reveals that while members of Gen Z clearly aspire to homeownership, an education program like CreditSmart Homebuyer U is needed and can make a positive impact not only on today’s aspiring homeowners, but on future generations as well," Gardner said.