Sacramento Freddie Mac BorrowSmart
Get Up to $2,500 for Your Home Purchase!
Down Payment Help for Sacramento Homebuyers
Buying a home just got easier with the Sacramento Freddie Mac BorrowSmart Program! If saving for a down payment is holding you back, this program provides up to $2,500 in down payment assistance to eligible buyers.
At New Way Mortgage, we specialize in helping Sacramento buyers take advantage of affordable home financing options—and BorrowSmart is one of the best. With flexible credit requirements, down payment assistance, and lower upfront costs, you could be in a new home sooner than you think!
Let’s dive into how Freddie Mac BorrowSmart can help you become a homeowner in Sacramento.
What is the Freddie Mac BorrowSmart Program?
The BorrowSmart Program is a down payment assistance program designed by Freddie Mac to help low-to-moderate income buyers cover the upfront costs of buying a home.
BorrowSmart Provides:
✔ Up to $2,500 in down payment assistance
✔ Flexible credit requirements (620+ credit score)
✔ Works with low down payment loan options like HomePossible
✔ Can be combined with other down payment assistance programs
✔ No repayment required – It’s a true homebuyer grant!
Did You Know? BorrowSmart is not a loan—it’s free money that helps you buy a home faster.
Who Qualifies for Freddie Mac BorrowSmart in Sacramento?
To qualify for BorrowSmart, you need to meet a few simple requirements:
✅ Minimum Credit Score: 620+
✅ Income Limit: Your income must be ≤ 80% of the Sacramento area median income ($89,360 in most cases).
✅ Primary Residence: You must plan to live in the home (no investment properties).
✅ Loan Type: Must use a Freddie Mac HomePossible or HomeOne loan.
✅ Homebuyer Education: Complete a free online homebuyer course before closing.
💡 Not sure if you meet the income limit? We can check for you in minutes!
How Much Can You Get with BorrowSmart?
The amount of down payment assistance you qualify for depends on your income level:
| Income Level (Compared to Area Median Income – AMI) | Assistance Amount |
|---|---|
| ≤ 50% of AMI (Up to ~$55,850) | $2,500 |
| 50-80% of AMI ($55,850 – $89,360) | $1,000 |
Example:
If your household income is $60,000 per year, you could get $1,000 toward your down payment. If your income is $50,000 or less, you could receive $2,500!
Bonus: BorrowSmart can be combined with other local Sacramento down payment assistance programs, helping you get into a home with even less out of pocket!
How BorrowSmart Works with Low Down Payment Loans
The BorrowSmart Grant pairs perfectly with Freddie Mac’s low down payment loans:
Option 1: HomePossible Loan + BorrowSmart
🏡 Best for: Buyers with income below 80% AMI
✔ 3% down payment required
✔ Lower mortgage insurance than FHA
✔ Flexible credit & debt-to-income (DTI) ratio guidelines
Option 2: HomeOne Loan + BorrowSmart
🏡 Best for: First-time homebuyers with income above 80% AMI
✔ 3% down payment required
✔ No income limits
✔ Works for single-family homes, condos, & townhomes
💡 Not sure which loan is best for you? We’ll help you compare and choose the right fit!
Why BorrowSmart is Better Than FHA Loans
Many Sacramento buyers assume FHA loans are their only option, but BorrowSmart + HomePossible could be a better deal!
| Feature | BorrowSmart + HomePossible | FHA Loan |
|---|---|---|
| Minimum Down Payment | 3% | 3.5% |
| Down Payment Assistance? | Yes – Up to $2,500 | No |
| Mortgage Insurance (MI) | Lower & removable | Stays for life of loan |
| Credit Score Requirement | 620+ | 580+ |
| Income Limits? | Yes (80% AMI max) | No |
| Best For | Buyers with low-to-moderate income | Buyers with lower credit or higher DTI |
✅ BorrowSmart + HomePossible saves you more in the long run—lower mortgage insurance and down payment help means lower monthly payments!
How to Apply for the Sacramento BorrowSmart Program
🏡 Ready to get up to $2,500 for your home purchase? Here’s what to do next:
Step 1: Check Your Eligibility
📌 We’ll check your income and credit score to confirm your BorrowSmart eligibility.
Step 2: Get Preapproved for a HomePossible or HomeOne Loan
📌 A preapproval helps you understand how much home you can afford and shows sellers you’re ready to buy.
Step 3: Find a Home in Sacramento
📌 Work with a real estate agent who understands BorrowSmart—we can connect you with one!
Step 4: Complete Homebuyer Education
📌 Take a quick online course to learn about homeownership basics.
Step 5: Close & Move In!
📌 Once approved, you’ll receive up to $2,500 at closing—and start your journey as a Sacramento homeowner! 🎉
Why Sacramento Homebuyers Love BorrowSmart
Sacramento’s housing market is competitive, but down payment assistance can give you an edge! BorrowSmart helps:
✅ First-time buyers who need a little extra help
✅ Low-income and moderate-income buyers afford homeownership
✅ Buyers who want a lower monthly payment than an FHA loan
✅ People who need flexible income sources to qualify
Get Preapproved for BorrowSmart Today!
At New Way Mortgage, we’re experts in down payment assistance and will help you get every dollar you qualify for.
📞 Call or text us at 916-465-6639
📧 Email us at hello@newwaymortgage.com
📅 Schedule an appointment HERE
📺 Want mortgage tips? Subscribe to our YouTube channel at www.newwayhome.com for expert advice!
FAQs About the Sacramento BorrowSmart Program
1. Do I have to repay BorrowSmart funds?
No! This is a true grant—you do not have to pay it back.
2. Can I use BorrowSmart with an FHA loan?
No. BorrowSmart is only for Freddie Mac’s HomePossible and HomeOne loans.
3. How do I know if I qualify?
Your income must be 80% or less of the Sacramento area median income. We can check this for you in minutes!
4. Can I combine BorrowSmart with other down payment assistance programs?
Yes! BorrowSmart can be stacked with other local or state assistance programs.
5. How long does it take to get BorrowSmart funds?
BorrowSmart is applied at closing—you don’t have to wait for separate approval!
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