Definition
Freddie Mac is a government-sponsored enterprise that purchases mortgages and sets eligibility standards that condo and co-op projects must meet for their units to be financeable.
Why It Matters Financially
Like Fannie Mae, Freddie Mac standards tie to reserve adequacy and financial stability, so a well-funded association keeps its units marketable. Financing reserves can help maintain compliance.
Example Use Case
An association maintains its reserves at Freddie Mac thresholds so buyers can secure conventional financing for units.
Thinking about financing a reserve project?
Talk to an HOA financing expert. Get pre-approved
Related Terms
Fannie Mae, FHA Approval, Reserve Fund, Percent Funded, Creditworthiness