SOURCE: Mortgage News Feed
Freddie Mae has unveiled another round of changes to its Single-Family Seller/Servicer Guide. There are more than a half dozen changes effecting mortgages for refinancing, condominiums and relocation. Effective dates refer to mortgages that settle on or after that date. Effective October 1 Freddie Mac will no longer require a 5 percent contribution from borrowers' personal funds for mortgages that have loan-to-value (LTV) ratios greater than 80% and are secured by Primary Residences and for which a gift or gift of equity from a related person is used as a source of funds. The same applies to mortgages meeting that LTV requirement for which an unsecured loan that is an Employer Assisted Homeownership (EAH) Benefit is used as a source of funds.
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