Freddie Mac Fixed Income Mortgage Guidelines On Conventional Loans
This BLOG On Freddie Mac Fixed Income Mortgage Guidelines On Conventional Loans Was PUBLISHED On December 6th, 2018
Freddie Mac Fixed Income Mortgage Guidelines:
Freddie Mac is always updating its guidelines, just like Fannie Mae and HUD.
- Recently Freddie Mac has updated documentation requirements for social security income, making it easier on the borrower
- We are now able to accept the Social Security Awards letter OR most recent 60 days bank statements showing the Social Security direct deposits
- In the past we would need BOTH
- Freddie Mac is changing with the times to make the loan process easier on individuals who receive Social Security income
- Now this change may not seem dramatic, but it is a step in the right direction
Benefits Of Freddie Mac Fixed Income Mortgage Guidelines On Conventional Loans
Freddie Mac, Fannie Mae and HUD are always looking for ways to improve the mortgage process.
- As mortgage professionals, documentation is part of our day to day lives
- We do not ask for documentation just for fun
- There are very specific guidelines on what we must document from a borrower
- The mortgage process has a very strict documentation policy
- So anytime we see a major player such as Freddie Mac remove documentation, we smile!
Freddie Mac Fixed Income Mortgage Guidelines On Grossing Social Security Income
If you receive Social Security income, please remember the fact that you can gross up your monthly benefit amount by up to 125% for mortgage qualification purposes.
If you are not required to pay income tax on your social security income, you are allowed to gross up the amount you receive.
See below for maximum gross up amounts:
- Fannie Mae and Freddie Mac allows grossing up 125% for conventional financing for fixed income borrowers on social security
- HUD, the parent of FHA, allows fixed income borrowers to gross up 115% of their social security income
- VA Loans allows borrowers to gross up 115% of their social security fixed income
Clearly, conventional loans permitting 125% grossing up on social security and other non-taxable fixed income is a great advantage for mortgage borrowers.
Documents Required To Start Mortgage Process
What other documentation will you need to start the mortgage process?
- Last 60 Days Bank Statements – needs to show direct deposits for fixed income
- OR – Social Security Awards Letter
- Driver’s License
- Current mortgage statement (if a refinance)
- Homeowner’s Insurance Agent Information
Fixed income has always been the easiest income to verify, and it just became even easier with Freddie Mac. To talk with a mortgage professional from Gustan Cho Associates Mortgage Group, call Mike Gracz on 630-659-7644 or text us for faster response. Or send an email to email@example.com.
We can go over your specific mortgage qualifications based on your Social Security benefits. We are available 7 days a week and look forward to answering any questions you may have. Whether you are looking to downsize from your current home, moving to a larger home, or refinance your current property, we are here to make the process easy and streamlined!