Freddie Mac BorrowSmart and BorrowSmart Access
Down payment and closing cost credit sized by income tier; Freddie Mac has published $2,500 for buyers at or below 50% of AMI
BorrowSmart is a Freddie Mac credit that participating lenders apply at closing toward your down payment or closing costs on a Home Possible mortgage. It is not repaid. The amount depends on your income tier, with the largest credit for very low income buyers at or below 50% of area median income. BorrowSmart Access is a separate version for a short list of metro areas with a higher income ceiling. Both require homeownership counseling and are available only through lenders that have signed on.
Funding was available the last time we checked.
Last verified Sep 23, 2026. Program terms change; confirm with the administrator before you rely on them.
At a glance
- Amount
- Down payment and closing cost credit sized by income tier; Freddie Mac has published $2,500 for buyers at or below 50% of AMI
- Type of help
- Grant
- Where
- Nationwide
- Run by
- Freddie Mac, delivered through participating lenders with a Home Possible mortgage
- First-time buyer
- Repeat buyers welcome
- Income limit
- Up to 80% of area median income
- Homebuyer education
- Required
How the grant works
Money you do not pay back, as long as you meet the program's stay-in-the-home terms.
- Monthly payment: None
Who qualifies
- Repeat buyers welcome. Home Possible does not require first-time status. Education is required when all occupying borrowers are first-time buyers, and BorrowSmart adds its own counseling step.
- Income. BorrowSmart follows the Home Possible cap of 80% of area median income for the property's location, with the largest credit at or below 50% of AMI. BorrowSmart Access allows higher incomes in its listed metro areas. Ask a participating lender for the tier you fall into (checked 2026-09-23).
- You must finance with a Freddie Mac Home Possible mortgage through a lender that participates in BorrowSmart. Not every lender does.
- Completion of homeownership counseling with an approved counselor is part of the program.
- BorrowSmart is available in all 50 states and DC. BorrowSmart Access is limited to specific metro areas that Freddie Mac publishes in its eligibility map. When we checked, the Washington and Baltimore metros did not appear on that list.
How to apply
- 1Ask lenders you are comparing whether they offer Freddie Mac BorrowSmart. Sean does not steer buyers to any lender; this credit is only available through lenders that have joined the program.
- 2Have the lender run your income against the property's AMI tiers and tell you the credit amount for your tier.
- 3Complete the required homeownership counseling before closing and keep the certificate.
- 4Have the credit shown on your Loan Estimate along with any other assistance so everything is underwritten together on the Home Possible loan.
Watch out for
- Lender participation is the gate. Two lenders quoting the same Home Possible loan can differ only in whether BorrowSmart is on the table.
- Freddie Mac's public page confirms the program and its national reach but does not publish the full credit schedule. Amounts above the $2,500 very-low-income credit are set with participating lenders, so get the figure in writing.
- BorrowSmart Access is metro-limited. Do not assume the Washington or Baltimore area qualifies. Check Freddie Mac's Access eligibility map for the address.
- The credit rides on a Home Possible loan, so all Home Possible rules apply, including the 80% AMI cap and mortgage insurance until you reach 20% equity.
When a buyer is under 50% of AMI, I ask every lender on the list whether they do BorrowSmart. It is a small credit that stacks cleanly on top of state and county money.
Straight answers
How much is the credit?
It depends on your income tier. Freddie Mac has published a $2,500 credit for Home Possible buyers at or below 50% of area median income. Tiers above that are smaller and are confirmed by the participating lender.
Do I have to pay it back?
No. BorrowSmart is applied as a credit toward your down payment or closing costs at closing and is not a loan.
Is the DC or Baltimore area in BorrowSmart Access?
Standard BorrowSmart is available everywhere, including Maryland, DC, and Virginia. BorrowSmart Access, the higher-income version, is limited to specific metros, and neither the Washington nor Baltimore metro appeared on the list when we checked. Freddie Mac's eligibility map is the final word.
Sources
- Freddie Mac, BorrowSmart Program (available in all 50 states and DC) (read Sep 23, 2026)
- Freddie Mac, BorrowSmart Access Income and Property Eligibility Tool (read Sep 23, 2026)
- Freddie Mac Single-Family, Loan Selling Advisor February 2024 updates ($2,500 credit for very low income Home Possible buyers) (read Sep 23, 2026)
- Freddie Mac, Home Possible Mortgage fact sheet (February 2026) (read Sep 23, 2026)
Program details are summarized from public sources and change without notice. Funding badges reflect the last time we checked, not a guarantee of availability. This is buyer education from a real estate agent, not a loan pre-approval or a commitment to lend. Eligibility is decided by each program administrator and your lender. Equal Housing Opportunity.
Programs are the easy part. Timing is the hard part.
Most buyers lose assistance on a deadline, not on eligibility. Sean helps you map out the counseling, the lender conversation, and the contract dates so nothing slips.