Freddie Mac Fixed Rate Mortgage Loans

Meet Our PDCU Mortgage Specialist

Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs.

Michelle Dzon

Member First Mortgage

michelle.dzon@memberfirstmortgage.com

616-301-1714 | NMLS ID: #401292

A Freddie Mac Fixed Rate Mortgage Loan is a home loan with an interest rate that remains constant throughout the life of the loan. It is backed by Freddie Mac and provides borrowers with predictable monthly payments, making it easier to budget and plan for the future.

Eligibility for a Freddie Mac Fixed Rate Mortgage Loan typically includes having a stable income, a good credit score, and a manageable debt-to-income ratio. Specific eligibility criteria can vary, so it’s best to contact People Driven Credit Union for personalized information.

Down payment requirements can vary, but typically range from 3% to 20% of the home’s purchase price. Lower down payments may require private mortgage insurance (PMI).

The minimum credit score required is generally around 620, but higher credit scores can help you qualify for better interest rates and loan terms.

Eligible properties include single-family homes, condominiums, and multi-unit properties (up to four units). The property must be used as your primary residence.

Common loan terms include 15, 20, and 30 years. The term you choose will affect your monthly payments and the total interest paid over the life of the loan.

When you're planning to buy a home or refinance, choosing the right mortgage can make a big difference in your financial future. A Freddie Mac fixed-rate mortgage offers the security of consistent payments and long-term stability—making it a popular option for homebuyers seeking predictability and peace of mind. Here's why this type of loan could be the right fit for you:

• Predictable Monthly Payments: Your interest rate and monthly payments remain the same throughout the life of the loan.
• Stability: Fixed rates provide financial stability and simplify long-term budgeting.
• Flexibility: Available for various property types and occupancy situations.

More Advantages

Lower Risk Compared to Adjustable-Rate Mortgages (ARMs)

Unlike ARMs, where rates can increase over time, fixed-rate loans remove the uncertainty of changing interest rates. This lower risk appeals especially to first-time buyers and long-term homeowners.

A Good Fit for Long-Term Homeowners

If you plan to stay in your home for several years, a fixed-rate mortgage can be more cost-effective in the long run. You'll avoid future refinancing due to rate hikes and enjoy consistent payments from start to finish.

Interested in Learning More About Freddie Mac Loans?

Contact our mortgage expert to find out what kind of loan makes the most sense for you. Whether you are a first-time home buyer, a low-income borrower, or a current homeowner looking to refinance, People Driven Credit Union can answer your questions and find the perfect mortgage product for you.

Yes, refinancing with a Freddie Mac Fixed Rate Mortgage can help you secure a lower interest rate, reduce your monthly payments, or change your loan term to better suit your financial goals.

PMI is insurance that protects the lender if you default on your mortgage. It is typically required if your down payment is less than 20% of the home’s purchase price. PMI can be canceled once you have enough equity in your home.

How much does PMI cost?

The cost of PMI can vary depending on factors like your credit score, mortgage loan type, and down payment size. On average, PMI ranges from 0.3% to 1.5% of the original loan amount per year, typically added to your monthly mortgage payment.

Can I remove PMI from my mortgage?

You can request to remove PMI once your loan-to-value (LTV) ratio reaches 80%, either through regular payments or increased home value. Most lenders automatically cancel PMI when your LTV hits 78%, as long as you’re current on your payments.

Contact a PDCU Mortgage Specialist Today

Do you have more questions about when PMI is required, or any other mortgage-related questions? Reach out to our loan department for a mortgage loan application to start your home ownership journey.

Apply online or contact our mortgage specialist, Michelle Dzon, who will guide you through the application process, help you understand your options, and determine your eligibility. Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs.

Michelle Dzon

Member First Mortgage

michelle.dzon@memberfirstmortgage.com

616-301-1714 | NMLS ID: #401292

If you’ve started exploring home loans, you may have heard of Fannie Mae and Freddie Mac. Their names sound friendly and familiar, but many first-time homebuyers aren’t sure what these organizations actually do, or why they matter when you’re applying for a mortgage through your credit union. Let's explore how Fannie Mae and Freddie Mac affect the loans that credit unions and other lenders offer.

Who Are Fannie Mae and Freddie Mac?

Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are both government-sponsored enterprises (GSEs). They aren’t direct government agencies; Congress created them to support the U.S. housing market. Their main job is to buy mortgages from local lenders (like credit unions and banks). After buying these loans, they combine them into mortgage-backed securities (MBS) to sell to investors. This process: 

• Gives lenders more cash to issue new home loans
• Keeps mortgage interest rates more stable nationwide
• Helps make homeownership more accessible for everyday families

You won’t apply directly to Fannie Mae or Freddie Mac for a mortgage. Instead, you apply through a credit union or bank. Those lenders follow guidelines set by Fannie or Freddie so the loan can be held by them later. Fannie Mae and Freddie Mac are regulated by the Federal Housing Finance Agency (FHFA), which sets guidelines for their activities and oversees their operations.

How Are Fannie Mae and Freddie Mac Different?

While Fannie Mae and Freddie Mac both keep mortgage money flowing, they focus on different sources of loans and have slightly different rules.

Fannie Mae 

Fannie Mae was established in 1938 as a government agency, but was later privatized in 1968. The agency:

• Works primarily with big banks and larger retail lenders. Your credit union may sell some of its loans to Fannie Mae if it partners with larger institutions.
• Covers standard conventional loans. Fannie Mae is best known for conventional fixed-rate mortgages, including the popular 30-year fixed loan.
• Offers the HomeReady® Program. Provides low down-payment options (as little as 3%) for creditworthy borrowers with moderate incomes.

Freddie Mac

Freddie Mac was established in 1970 to increase homeownership and expand the mortgage market. This agency:

• Works more with smaller banks and community lenders. This is important because many credit unions and local mortgage companies fit this profile.
• Offers the Home Possible® Program. Also allows down payments as low as 3%, but often has slightly more flexible income requirements or options for co-borrowers.
• Focuses on access. Freddie Mac was created in part to increase competition and provide more mortgage choices to local financial institutions.

Types of Loans They Oversee

Both Fannie Mae and Freddie Mac primarily handle conventional conforming loans. A conforming loan simply means it meets the standards they set for:

• Loan limits (the maximum amount buyers can borrow, which adjusts yearly and varies by county)
• Credit scores and debt-to-income ratios
• Down payment requirements

Examples include:

• Fixed-rate mortgages (15- or 30-year terms)
• Adjustable-rate mortgages (ARMs) that meet conforming guidelines
• Special low-down-payment programs like Fannie Mae’s HomeReady and Freddie Mac’s Home Possible

They do not directly handle FHA, VA, or USDA loans, those are backed by other federal programs.

How Your Credit Union Fits In

When you apply for a mortgage with your credit union, the loan officer will review your finances and help you choose the right product. Behind the scenes, the credit union may decide to sell the loan to either Fannie Mae or Freddie Mac. This doesn’t change your experience, you’ll continue making payments to your credit union or the assigned servicer, but it allows your credit union to free up funds to help other members buy homes too. Fannie Mae and Freddie Mac are vital for:

• Competitive Rates. Because your credit union can sell qualifying mortgages to Fannie or Freddie, it gets money back to lend to other members. This steady flow of funds helps keep mortgage rates lower and more stable.
• Flexible Programs. Fannie Mae and Freddie Mac each offer special programs that can make it easier to qualify, especially for first-time buyers. For example, their 3% down-payment options often cost less upfront than traditional 20% down loans.
• Clear Standards. Loans that meet Fannie or Freddie guidelines are considered “conforming,” which gives lenders and borrowers confidence in the process. You’ll know exactly what credit score, income level, and debt ratio you need to qualify.
• Easier Refinancing. In the future, if interest rates drop, Fannie and Freddie loans often have straightforward mortgage refinance options, helping homeowners save money over time.

For most borrowers, there’s very little difference between a Freddie Mac Fixed Rate Mortgage and a Fannie Mae Fixed Rate Mortgage.

How do Freddie Mac and Fannie Mae fixed-rate mortgages differ?

Both are government-sponsored enterprises (GSEs) that purchase loans from lenders like PDCU. They offer conforming fixed-rate mortgages with similar terms, credit requirements, and down payment options. You get the same great fixed rate and monthly payment either way.

The Main Difference

Behind the scenes, Freddie Mac loans use Loan Product Advisor® for underwriting, while Fannie Mae loans use Desktop Underwriter®. Some qualification guidelines—such as how income or co-borrowers are evaluated—may vary slightly between the two systems.

How PDCU Helps You Choose

We run your application through both systems and select the one that offers the best approval path and terms for your situation. This means you have the best chance of approval with the most favorable terms and conditions.

Common Questions

How do Freddie Mac and Fannie Mae fixed-rate mortgages differ? For most borrowers, there’s very little difference. Both provide stable, fixed-rate mortgages with predictable monthly payments. Your lender will match you with the right one based on your financial profile.

Get Help from Our Team

Call us at 844-700-7328 during business hours. Our mortgage specialists explain exactly how Freddie Mac and Fannie Mae fixed-rate mortgages differ and help you choose the best option. You can also visit any branch in Livonia, Southfield, Warren, Ypsilanti, or Romeo.

5 Helpful Hints When Choosing a Fixed Rate Mortgage

1. First, focus on your credit score and debt-to-income ratio.
2. Next, gather your income documents and bank statements early.
3. Also, compare current rates for both Freddie Mac and Fannie Mae options.
4. Then, let our team run your application through both systems.
5. Finally, contact us at 248-263-4100 for a personalized recommendation.

People Driven Credit Union makes it easy to choose between Freddie Mac and Fannie Mae fixed-rate mortgages. You get a stable loan with predictable payments and the best possible terms for your situation. Many members close quickly and enjoy peace of mind for years to come. Thank you for banking with us. Our team is always ready to help you secure the right mortgage.

The NMLS ID# (Nationwide Multistate Licensing System & Registry Identification Number) is a unique identifier assigned to mortgage loan originators (MLOs) and institutions involved in mortgage lending. It was created by the federal government to increase transparency and accountability in the mortgage industry. Why the NMLS ID Matters The NMLS database tracks licensing status, employment history, and any regulatory actions. This helps protect consumers by making sure only properly licensed professionals handle your mortgage. You can verify any loan officer or lender instantly. Where You Will See the NMLS ID Mortgage professionals must display their NMLS ID on all advertising, loan documents, emails, and websites. At People Driven Credit Union, every mortgage team member proudly shows their NMLS ID so you always know who you are working with. It is a unique identifier assigned to mortgage loan originators and institutions. You can verify any MLO or company at the official NMLS Consumer Access website. Get Help from Our Team Call us at 844-700-7328 during business hours. Our team explains what an NMLS ID is and shares the NMLS ID for any loan officer working on your file. You can also visit any branch in Livonia, Southfield, Warren, Ypsilanti, or Romeo. 5 Helpful Hints About NMLS IDs

1. First, always look for the NMLS ID on any mortgage advertisement or document.
2. Next, verify the ID at the official NMLS Consumer Access website.
3. Also, ask your loan officer for their personal NMLS ID number.
4. Then, check the company’s NMLS ID for People Driven Credit Union.
5. Finally, contact us at 248-263-4100 to confirm any NMLS ID on your loan file.

People Driven Credit Union uses the NMLS system to ensure complete transparency and consumer protection in every mortgage transaction. You can trust that every team member helping you is properly licensed and registered. Many members appreciate the peace of mind that comes from knowing exactly who is handling their home loan.

To apply for a mortgage, you will need to provide the following documents to verify your identity, income, assets, and employment. Required Documents & Why They are Needed

• Copy of your driver’s license or state-issued ID – Verifies your identity and legal name.
• Last 2 years of W-2 forms – Prove your employment history and income stability.
• Most recent 30 days of pay stubs – Shows your current income and allows us to calculate your debt-to-income ratio accurately.
• Last 2 years of Federal Tax Returns (including all schedules) – Confirms your reported income and helps lenders assess your overall financial picture.
• Most recent two months of bank statements (all pages) – Verifies your assets, down payment funds, and that you have enough reserves after closing.
• Contact information for your homeowner’s insurance agent – Required to set up the proper insurance coverage for the property at closing.

Why These Documents Matter Lenders use these documents to confirm you can afford the loan and meet underwriting guidelines. Having them ready when you apply can shorten your approval time from weeks to days. 5 Helpful Hints When Preparing Mortgage Documents

1. Gather everything before you apply — it can save you weeks of delays.
2. Make sure all pages of the bank statements are included.
3. Include all W-2s and tax returns, even if you filed jointly.
4. Scan or take clear photos of your documents for easy upload.

How do I check my loan application status at People Driven Credit Union?

You can check your loan application status by contacting People Driven Credit Union or your assigned loan specialist. Many members ask how do I check my loan application status because they want fast updates on their progress.

How to check the status

• Call PDCU member or loan support at 248-263-4100.
• Have your identifying information ready for verification.
• Ask whether any additional documents are needed to proceed.

Checking your loan application status at People Driven Credit Union is simple and secure. You receive clear answers quickly. Our team keeps you informed every step of the way.

Call for Your Status Update

Pick up the phone and dial 248-263-4100 during business hours. Our loan specialists answer right away. Give them your name, application number, or Social Security number. They pull up your file instantly.

Prepare for the Call

Have your driver’s license or member number ready. Note any recent emails or letters from us. This speeds up the process so you get answers faster.

Common Questions

How long does a review usually take? Timing varies by loan type and application volume, so contact PDCU for your current status timeline.

Get Help from Our Team

Call us at 248-263-4100 during business hours. Our team checks your status right away. You can also visit any branch in Livonia, Southfield, Warren, Ypsilanti, or Romeo.

5 Helpful Hints for Checking Your Loan Application Status

1. Call early in the day for shorter wait times.
2. Write down your application number before you call.
3. Ask for an email summary of your current status.
4. Check your spam folder for any updates from PDCU.
5. Contact us at 248-263-4100 if you need to submit more documents.

People Driven Credit Union keeps you informed about your loan application status. You feel confident knowing exactly where things stand. Our team works hard to move your application forward quickly. Many members receive approval updates within days. Thank you for trusting us with your loan needs. Our team is always ready to help you reach your financial goals.