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Freddie Mac delivers down payment assistance to lenders and buyers

Down payment assistance is growing as the housing market looks at a slow recovery.

To help combat record-high home prices, Freddie Mac is working on making down payment assistance for homebuyers easier to come by.

In early December, Freddie Mac began the process of standardizing the documents for various down payment assistance programs. Before the standardization, each program had different paperwork, making it difficult for lenders to assess what borrowers truly need.

Freddie Mac and Fannie Mae have partnered to distribute these documents to all lenders working with housing agencies. When the documents initially launch, 19 states are prepared to provide information to lenders.

 "We know that standardization has increased efficiency, lowered costs and improved many areas of the mortgage industry," said Danny Gardner, the senior vice president of mission and community engagement at Freddie Mac. "By embracing standardization and creating a set of industry-wide documents, we are providing clarity and consistency that will enable more lenders to help more individuals and families leverage down payment assistance programs across the country."

Freddie Mac has implemented other programs to help with down payment assistance. DPA One is a tool for housing professionals that aggregate down payment assistance programs all in one place. This helps lenders easily access over 400 down payment assistance programs they can then recommend to their customers.

If you’re looking to purchase a home in the current market, you can explore your mortgage options by visiting Credible to compare rates and lenders and get a mortgage preapproval letter in minutes.


Mortgage rates finally fell below 7% a few days ago, indicating that rates are on a decline, albeit a slow one. With rates falling, it looks like the housing market is heading toward recovery, according to a recent press release from Fannie Mae.

"Notwithstanding the recent mortgage rally, housing and mortgage markets will enter 2024 at approximately the same level they entered 2023," Doug Duncan, the senior vice president and chief economist at Fannie Mae, explained. There is some hope for those looking to buy in 2024, but the real progress won’t likely start until 2025.

This, in part, is due to high cost of homes. In November, home prices rose by 3.7% from the year before. The average home price, according to Redfin, is well over $400,000, a cost that many Americans can’t fathom.

If you’re ready to take advantage of lowering rates, you can explore your mortgage options in minutes by visiting Credible to compare rates and lenders. Check out Credible and get prequalified today.


To fuel the economy, many states are taking matters into their own hands. Certain states have implemented their own homebuying programs that lessen the burden on the buyer, encouraging homes to sell even as interest rates and home prices rise.

Delaware is one state working to help buyers cover the cost of homebuying. Over the summer, the state housing authority (DSHA) released four programs that prioritize down payment help and low interest rates for first-time and repeat borrowers.

California also recently instituted the Dream For All program. While the official program won’t be released until spring of 2024, the intention is to provide millions in funding for down payment assistance to the residents of California.

First-time homebuyers get 20% of their home’s cost to use toward the down payment. When they sell, the state gets a portion of that 20% back that they pass on to the next borrower. Numerous other states are following in the footsteps of California and Delaware.

If you think you’re ready to shop around for a home loan, consider using Credible to help you easily compare interest rates from multiple lenders in minutes.

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at and your question might be answered by Credible in our Money Expert column.

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