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Torres & Co. Lending > First-Time Homebuyer Programs > Borrow Smart Program

Borrow Smart Program

BorrowSmart Loan Program

The BorrowSmart Program, offered through Freddie Mac, provides eligible first-time and moderate-income homebuyers with down payment and closing cost assistance in the form of lender credits. This program is designed to make homeownership more affordable by reducing upfront costs that often keep buyers from purchasing.

What Is the BorrowSmart Program?

BorrowSmart provides a credit toward down payment and closing costs when income and property eligibility requirements are met. It’s especially helpful for first-time buyers who qualify for Conventional financing but need extra help covering initial expenses.

How It Works

  • Down Payment: As low as 3% when paired with HomeOne, Home Possible, or HomeReady.
  • Credit Amounts: Borrowers may receive $1,000 to $2,500 in credits toward down payment or closing costs.
  • Eligibility: Based on household income and property location.
  • Credit Score Requirement: Minimum 620.
  • Property Types: 1-unit primary residences (single-family, condos, PUDs).

Benefits of BorrowSmart

  • Helps reduce out-of-pocket expenses at closing.
  • Can be combined with other assistance programs for maximum savings.
  • Works alongside popular first-time buyer loans like HomeOne, Home Possible, or HomeReady.
  • Flexible use — credits can go toward either down payment or closing costs.

Fun Facts & Insider Details

  • Income Limits Apply: BorrowSmart is designed for low-to-moderate income borrowers. Income is measured against the Area Median Income (AMI).
  • Stackable Assistance: Many buyers don’t realize you can layer BorrowSmart with state/local down payment assistance programs for even greater savings.
  • Closing Cost Relief: Since closing costs typically run 2–5% of the purchase price, BorrowSmart can significantly reduce upfront expenses.
  • Geographic Flexibility: Certain higher-cost areas may allow larger assistance amounts.

Who Is the Best Candidate for BorrowSmart?

  • First-time buyers with limited savings for upfront costs.
  • Borrowers using HomeReady, Home Possible, or HomeOne loans.
  • Moderate-income families purchasing in eligible areas.
  • Buyers looking to combine multiple assistance programs.

FAQs – BorrowSmart Loan Program

  • Not always. While BorrowSmart is commonly used by first-time buyers, eligibility is based on income and location.

  • Between $1,000 and $2,500, depending on income level and property location.

  • Yes. It can often be layered with state or local down payment assistance for maximum benefit.

  • No. BorrowSmart assistance is provided as a credit, not a loan.

Next Step

Want to see if you qualify for BorrowSmart? Let’s review your profile and determine your eligibility.

Apply Now

⚖️ Disclaimer: This guide is for educational purposes only. Loan approval and terms depend on credit, income, assets, property type, and program guidelines.

Torres & Co. LendingBorrow Smart Program