Freddie Mac, explained

Six things to know, one tap each.

• Freddie Mac does not lend to buyersFreddie Mac does not lend to buyers. It buys loans from lenders, which is why a lender may call your loan conventional or conforming.Ask a lender
• Conforming loans and the limitA conforming loan fits the size limit set each year by the FHFA and the rules Freddie Mac buys by. Bigger loans are called jumbo.Ask a lender
• Home Possible and other programsHome Possible is the name of Freddie Mac's program for buyers with modest incomes. Whether it fits you is a question for a lender.Ask a lender
• PMI or government insuranceA conventional loan with a small down payment usually carries private mortgage insurance. FHA and VA loans use government backing instead.Ask a lender
• The home has to pass tooAn appraisal and an inspection look at the home itself. They are two different checks, and you pay for both.Ask a lender
• Steps from search to keysPre-approval, a Loan Estimate, an inspection and an appraisal, then closing. In order, in plain words.Ask a lender

Check where you stand

Three taps about savings, credit and the home. Nothing you tap is saved or sent. The result says what may be worth asking a lender about.

• Might a Freddie Mac loan fit?Three taps about savings, credit and the home. Nothing you tap is saved or sent. The result says what may be worth asking a lender about.

Freddie Mac checklist

Plain steps, in order. Tick them off at your own pace.

• Remember who does what: a lender makes your loan, and Freddie Mac may buy it afterward.
• Read your own credit reports and fix any mistakes you find.
• Add up your monthly debts, so you know what a lender will see.
• Ask a lender for a pre-approval, and ask for the Loan Estimate in writing.
• Ask whether the loan would be a conforming loan, and what the conforming limit is in the county where you are shopping.
• Ask whether a program such as Home Possible could apply, and what it would change.
• Ask whether you would pay private mortgage insurance, what it would cost each month and when it could end.
• Choose a home and make an offer. Ask your agent how the loan type changes the offer.
• Book the inspection. The appraisal is ordered by the lender; the inspection is yours.
• Compare the Loan Estimate to the Closing Disclosure a few days before closing.
• After closing, find out who your servicer is and who owns the loan. The who-owns-my-mortgage page shows how.

Open the checklist page

Slide show

Six slides, one idea each. Swipe on a phone, tap Next and Back, or press the arrow keys.

• Open the slide showSix slides, one idea each. Swipe on a phone, tap Next and Back, or press the arrow keys.

Full details

One page for each topic, with what each one rests on and where to read the official page.

• Freddie Mac does not lend to buyersIt buys loans from lenders. That one fact explains most of the words you will hear.Read
• Conforming loans and the yearly limitA loan can be too large for Freddie Mac to buy. The limit changes every year.Read
• Home Possible and other programsFreddie Mac gives lenders a program called Home Possible. A lender decides whether it fits you.Read
• PMI versus government insuranceEvery loan with a small down payment has some kind of insurance for the lender. Who provides it differs.Read
• The home has to pass tooA lender looks at the house as well as the buyer.Read
• Steps from search to keysThe order is the same for most home loans.Read

Common questions

Can I get a loan from Freddie Mac?

No. Freddie Mac does not lend to buyers. A lender makes the loan, and Freddie Mac may buy it.

Does it matter who ends up owning my loan?

The terms you signed stay the same. The owner can decide which programs apply to you later, so it is worth knowing who it is.

How do I find out whether Freddie Mac owns my loan?

Ask your servicer, or use the lookup tool on Freddie Mac's own site. The who-owns-my-mortgage page shows how.

Does AskResi make loans?

No. AskResi is not a lender. We explain, and a lender answers.