Freddie Offers New Product Suite

Freddie Mac is preparing to announce a new suite of affordable loan products that will help workers earning 100% of median income to get 100% financing with only a $500 borrower contribution required.The new "Home Possible" loan products combine the "best features" of all affordable loan programs, a Freddie executive said. In addition, the HP loans are designed to boost the buying power of policemen, fire fighters, educators and health care workers by 24% so that they can afford to purchase homes in the communities where they work. Starting March 1, Freddie seller/servicers will be able to offer the new Home Possible products and process the loans through Loan Prospector -- the mortgage company's automated underwriting system. "It will be mainstreamed and it will be available everywhere," Freddie vice president David Stevens told MortgageWire. Freddie will issue seller/servicer guidance on Feb. 17 announcing the new HP products.