You’ve paid down your debt. Raised your credit score Started investing in your 401k. Got your passport. Traveled. Met someone you want to build a life with. Now you want to buy a home. But there’s one thing: your damn student loans.
You’ve had them for a few years. You’ve made payments. But, if you’re being real with yourself, you don’t see how you’re ever going to pay them off.
Still, you want to buy a home.
Enter Freddie Mac.
In this post, I’ll explain how Freddie Mac can help you get a mortgage even though you have a ton of student loan debt.
Let’s get to it.
What is Freddie Mac
For the purposes of this article, what you need to know is this:
Freddie Mac isn’t your lender.
You won’t apply directly to Freddie Mac for a mortgage.
Freddie Mac is a government-owned business that buys mortgages that meet Freddie Mac’s underwriting guidelines from mortgage lenders like the bank you’ve been dealing with. From there, they bundle your mortgage with other mortgages into government-backed securities that they sell to investors.
Why does Freddie Mac do this?
They do it to add stability and affordability to mortgages across the United States by freeing up a lender from having to hold on to its 30-year mortgages.
You see, if your lender had to hold onto all its mortgages it would have less money to lend to new borrowers.