ST. LOUIS — Freddie Mac has launched a new program designed to address homeownership gaps in underserved areas of 10 cities nationwide, including St. Louis, by offering funding toward down payments for first-time Black and Latino homebuyers.
The program, called BorrowSmart Access, aims to expand access to homeownership for creditworthy Black and Latino first-time homebuyers by offering $3,000 in down payment assistance, a spokeswoman for Freddie Mac said. Historically, access to funds for down payments has been one of the largest obstacles to homeownership, the spokeswoman said.
Freddie Mac is a government-sponsored enterprise that buys and guarantees mortgages issued through lenders in the secondary mortgage market.
The first national lender to sign on for BorrowSmart is Michigan-based Rocket Mortgage, the nation's largest mortgage lender and part of Rocket Companies (NYSE: RKT). The down payment credits will be funded by combined contributions from Freddie Mac and the borrower’s approved lender.
