Freddie Mac Offers One Year Tolerance for Unemployment
Freddie Mac has announced that they will now provide one year of forbearance for unemployed borrowers to pay their mortgage payments. Prior, lenders were only allowed to grant out-of-luck borrowers three months. Part of this new deal allows lenders, like Guaranteed Rate, the ability to approve unemployed borrowers’ loans with Freddie Mac for six months without prior approval from the government. From there, Freddie Mac can choose to extend the forbearance for another six months if they feel it is necessary.
These new options have been put in place in direction of the Federal Housing Finance Agency in hopes of helping families who are facing prolonged periods of unemployment. By giving them an extended amount of time to find a job so they can make their mortgage payments, this extra security is set up to help get families back on track to successful, long-term homeownership.
This new option for Freddie Mac will take place the beginning of February. Contact your loan officer for more information.