Thankful For Sweat Equity Down Payment Program With Freddie Mac

Quite honestly I had never heard of this program. I have utilized the FHA203k program, which allows the homeowner to borrow to purchase a home based upon what it will be worth after work is completed....after closing escrow.

This one is where people can do the work, prior to closing escrow. And then, the value that their 'sweat equity' brings to the property can then be considered part of their actual down payment!

Wowza! Yes, I do love that word.

(See, even Mark Cuban from Shark Tank likes Sweat Equity!)

At any rate, here is a copy & paste from the article that brought it to my attention about some of the guidelines:

Here’s more on how the program works, from Freddie Mac:

• Sweat equity to be used for the entire amount of down payment and closing costs with maximum 97% LTV/105% total LTV (affordable seconds).
• Sweat equity for manufactured homes up to a maximum LTV ratio of 95%.
• Sweat equity as an eligible source of funds for:
• All repairs and improvements to be completed by the borrower that are listed in the sales contract and included in the appraisal report.
• Repairs or improvements that are reflected on the appraisal report that are outstanding at the time of the appraisal.
• Credit for work completed prior to the original property inspection by the appraiser is not eligible for sweat equity.

I think we should all contact our favorite lenders and ask about this. 

Well, people that actually can do the work sure should!