Freddie Mac Prohibits Seller Gifts and Grants as Eligible Source of Down Payment Funds for Home Possible Mortgages

Freddie Mac issued an industry letter prohibiting the use of seller gifts and grants as eligible sources of funds for Home Possible Mortgages. Currently gifts or grants from the seller may be used towards the down payment on a Home Possible Mortgage. This industry letter removes these gifts and grants as an eligible source of down payment funds for Home Possible Mortgages. Lenders that currently provide down payment assistance may be eligible to continue providing gifts and grants to Borrowers. Freddie Mac will consider gift and grant programs for eligibility on a negotiated basis.

Click here to view the Freddie Mac Industry Letter