Federal Home Loan Mortgage Corporation (Freddie Mac) initiatives designed to increase homeownership opportunities for low- and moderate-income families typically involve purchasing and securitizing mortgages for properties that meet specific affordability criteria. These may include limits on borrower income, property price, and location within designated areas. For instance, a loan originated for a household earning below the area median income for a moderately priced home located in a qualified census tract might be part of such an initiative.
Facilitating access to mortgage financing for underserved communities is vital for promoting economic stability and growth. By reducing barriers to homeownership, these programs contribute to community development and wealth building, particularly for households traditionally excluded from the housing market. Historically, such efforts have played a crucial role in expanding housing opportunities following periods of economic downturn or during times of rapid housing cost increases. These initiatives work in tandem with other government and private sector programs aimed at creating a more equitable housing landscape.
