Freddie Mac – Conventional Mortgage Loans

Freddie Mac, like Fannie Mae, was sponsored by the federal government for the purpose of expanding the pool of money available for mortgage lenders to make loans to home buyers. It does so by buying mortgages from mortgage lenders. Unlike Fannie Mae, the mortgages are called conventional mortgages and need not be FHA insured.

Lenders that want to sell their mortgages to Freddie Mac must meet Freddie Mac guidelines. The guidelines are similar to FHA and Fannie Mae guidelines and include the following:

  • All construction phases and amenities in the project must be 100% complete.
  • The developer may not own more than 10% of the units.
  • No more than 30% of the units may be rentals.
  • No more than 15% of assessments can be delinquent more than 30 days.
  • No single entity can own more than 10% of the units.

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