24-17: Freddie Mac BorrowSmart® Program Discontinued

02/27/2024

Freddie Mac recently confirmed the BorrowSmart program is being discontinued. Please review the following dates and timelines carefully.

Home Possible VLIP

  • For Home Possible loans with AMI < 50% (VLIP), the last date to schedule the homebuyer eligibility screening review with the Homeownership Preservation Foundation (HPF) is February 29, 2024
    • The homebuyer counseling session can be completed with HPF after 2/29/2024, but must be completed prior to the note date
    • Homebuyer eligibility screening reviews scheduled after 2/29/2024 are no longer eligible for the BorrowSmart program and will not receive the $1,500 assistance
  • The last day to deliver BorrowSmart VLIP loans to Pennymac is 5/30/2024

HomeOne / Home Possible / Manufactured Homes LIP and MIP

  • For Home Possible loans with AMI >50% & <80% (LIP) and HomeOne or manufactured home loans with AMI >80% <100% (MIP), the last date to schedule the homebuyer eligibility screening review with the Homeownership Preservation Foundation (HPF) is May 31, 2024
    • The homebuyer counseling session can be completed with HPF after 5/31/2024, but must be completed prior to the note date
    • Homebuyer eligibility screening reviews scheduled after 5/31/2024 are no longer eligible for the BorrowSmart program and will not receive the $500 or $1,000 assistance
  • The last day to deliver BorrowSmart LIP and MIP loans to Pennymac is 8/30/2024

GSE Down Payment Assistance Product Enhancement– Coming Soon!

Pennymac is pleased to announce we will be releasing a down payment assistance product enhancement for VLIP mortgages. Complete details along with the release date will be announced shortly.

Please contact your Sales Representative with any questions.