Affordability and Homeownership: Freddie Mac Expert Shares What You Need to Know

Millions of potential buyers are unaware of options that could help them achieve their dream of homeownership. Carmen Mercado, Senior Affordable Lending Manager for Freddie Mac, discusses how the organization is working with RE/MAX to increase education among agents and buyers.

There are 37 million potential homebuyers in the U.S. who have the credit characteristics to qualify for a home and yet don’t have a mortgage, according to Freddie Mac, the agency dedicated to increasing affordable housing in the U.S. A lack of education on the variety of mortgage options available could be what’s holding them back.  

For example, many homebuyers are able to purchase a home with as little as 3% down, yet a common myth is that most loans require a 20% down payment. It’s a daunting difference – according to data from Freddie Mac, it would take most Americans between 2-4 years to save for a 3% down payment versus 14-24 years to save for a 20% down payment.

“If I were in the market today as a first-time homebuyer with the misconception that I need a 20% down payment, I may be pessimistic of making the dream of homeownership possible for me,” says Carmen Mercado, Senior Affordable Lending Manager for Freddie Mac. “However, if I knew that I could purchase a home with a 3% down payment, I would be more optimistic and excited about working with an agent on this journey.”