GC97 Freddie Mac HFA Advantage
The GC97 Freddie Mac HFA Advantage Program offers an insured conventional mortgage loan secured by a first mortgage with the options of down payment and closing cost assistance up to $7500 (the GC97 Plus loan) at a market interest rate the same as the first mortgage and 15-year term. Maximum CLTV limit of 105%.
Highlights for GC97 and GC97 Plus
- DPA provided through second mortgage financing, max CLTV 105% to assist with down payment and/or closing costs are as follows:
-Sales price < $150,000, DPA of $6,000
-Sales price ≥ $150,000, DPA of $7,500
- Interest rate is the same as the first mortgage
- Loan is amortized over a 15 year term.
- No first time homebuyer requirement
- Flexibility for loan qualification for borrowers with student loan debt
- Income limits apply differently for the GC97 than Great Choice
- Qualifying income of the borrower(s) on the loan is used instead of household income limits
- Lender compensation up to 2.75%
- Since this is not a bond loan, there are not any pre-closing disclosures needed, such as affidavits.
Become an Approved GC97 Lender
GC97 Program Guidelines -See SECTION X of OA Guide
Program Comparison Matrix: GC97 vs Great Choice
Qualifying Income Limits
Working Agreement for MBS Loans
THDA Exclusionary List
Recorded Webinar -- GC97 Training for Lenders
Click here | 35 minutes approximate time