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Mortgage Glossary

Freddie Mac

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

Freddie Mac is a government-sponsored enterprise that, like Fannie Mae, buys conforming loans to keep mortgage credit flowing.

What Freddie Mac means

It purchases loans from lenders and sets conforming guidelines through Loan Product Advisor. Together with Fannie Mae it shapes the conventional market.

Florida example

A Florida lender may sell a conforming loan to Freddie Mac instead of Fannie Mae. Either way the borrower's terms are set, and the sale frees the lender to make more loans.

What it is

Freddie Mac is a government-sponsored company that buys mortgages from lenders. Like Fannie Mae, it keeps the lending market liquid.

It also sets rules for conventional loans.

Why it matters

Freddie Mac guidelines affect your rate, down payment, and approval on conventional loans. Meeting them earns strong terms.

We know both Freddie and Fannie rules well. Apply now and we will find your best conventional fit.

Related program: Learn more →

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Official resources

Verify the details for your own situation against these government and agency sources: FHFA conforming loan limits and CFPB Owning a Home guide.

Related Mortgage Terms

Front-End RatioThe front-end ratio is the share of gross monthly income that goes to housing costs alone, including PITI.Fully Amortized LoanA fully amortized loan is one whose scheduled payments completely pay off the principal and interest by the end of the term, leaving no balloon.FundingFunding is the step where the lender disburses the loan money, completing the purchase after closing documents are signed.
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