Home Possible® Mortgage
Updated Home Possible Offering
We’ve added credit flexibilities and simplified Home Possible® mortgage requirements by consolidating Home Possible and Home Possible Advantage® into a single offering. See more about the changes in Single-Family Seller/Servicer Guide (Guide) Bulletin 2018-13. Check out updated mortgage highlights on this page.
Maximum Financing and Flexibility - Three Percent Down Payment Solution with Expanded Options
The Freddie Mac Home Possible® mortgage offers more options and credit flexibilities than ever before to help your very low- to moderate-income borrowers attain the dream of owning a home.
In addition to its down payment requirement of as little as 3 percent, Home Possible now offers more options to responsibly increase homeownership for more of your borrowers. Do-it-yourselfers can apply sweat equity to assist in meeting their down payment and closing costs, co-borrowers who do not live in the home can be included for a borrower’s one-unit residence, borrowers are permitted to own other properties, and more – all with competitive pricing and the ease of a conventional mortgage.
We’re helping you provide affordable solutions to more creditworthy borrowers so you can enhance your business and your communities at the same time.
Watch the video to the right, and learn more below, to Discover the Possibilities with Home Possible.
- Loan to Value (LTV) Ratios: Low down payment with a maximum of 97% LTV, 105% TLTV, 97% HTLTV for 1-unit properties.
- Property Options: 1-4 units, condos and planned-unit developments; manufactured homes are eligible with certain restrictions.
- Flexible Sources of Down Payments: Down payment can come from a variety of sources, including family, employer-assistance programs, secondary financing, and sweat equity.
- Mortgage Insurance (video): Mortgage insurance (MI) can be cancelled after loan balance drops below 80 percent of the home's appraised value, and MI coverage requirements are reduced for LTV ratios above 90 percent.
- Pricing: Credit Fees in Price are capped and less than standard fees for all loans over 80 percent LTV.
- Mortgage Flexibility: 15- to 30-year fixed-rate mortgages; 5/1, 5/5, 7/1 and 10/1 ARMs; super conforming mortgages.
- Refinance Options: No cash-out refinancing option is available for borrowers who occupy the property.
- Income Flexibility: No income limits in low-income census tracts, and otherwise limited to 100 percent Area Median Income (AMI). No geographic limits on loan amounts. Use the Home Possible Income & Property Eligibility Tool to see income limits for specific properties or submit to Loan Product Advisor® to determine Home Possible income eligibility.
- No Credit Score Necessary: Qualified borrowers without credit scores are eligible for mortgages with down payments as low as 3 percent. Learn more.
* Mortgage features are subject to additional requirements in our Single-Family Seller/Servicer Guide.
Advantages for Your Business
- Expand your market opportunity: Accommodate borrowers in a wide range of life stages from millennials purchasing their first home, to move-up borrowers and retirees considering downsizing.
- Expand your business by meeting a greater variety of client needs: Offer enhanced credit flexibilities to meet the needs of diverse individual borrower situations, giving them the practical solutions to own a home.
- Overcome the down payment barrier: Capitalize on a low 3 percent down payment solution and lend up to 105 percent TLTV with an Affordable Second® on a 1-unit property.
- Benefit from certainty: Choose to qualify through Loan Product Advisor for greater certainty in the loans you sell to Freddie Mac.
Benefits to Your Borrowers
- Realize the milestone of homeownership: without the barrier of gathering a 20 percent down payment.
- Apply sweat equity: for up to the entire amount of the down payment and closing costs.
- Non-occupying co-borrowers can contribute: to borrower funds on one-unit properties.
- Cancel mortgage insurance: upon reaching 20 percent equity, reducing the monthly mortgage payment and potentially saving thousands over the life of the loan.
- Enable empowered decisions: and life-long responsible homeownership with required financial literacy education, which can be fulfilled by Freddie Mac’s online, free CreditSmart® tutorials.
Information for lenders
Freddie Mac Home Possible mortgages are designed to grow your business and attract low- and moderate-income borrowers, first-time homebuyers, and underserved communities. Use the resources below and discover why a Home Possible mortgage may best fit for your borrowers' needs.
- Get the facts about Home Possible.
Home Possible Fact Sheet - effective October 29, 2018 Freddie Mac
Consolidated requirements announced in Guide Bulletin 2018-13 Secondary Financing:
Other Things You Need to Know:
- Home Possible Income & Property Eligibility tool – Use this quick tool to easily determine if your borrower meets the income requirements for a Freddie Mac Home Possible mortgage.
- Down Payment Assistance – Help your borrower find down payment programs in your area.
- Training Opportunities – Take a deep dive and learn how to originate Home Possible mortgages.
- Find details on Home Possible mortgages in Chapter 4501 of The Single-Family Seller/Servicer Guide.
Reach out to real estate professionals, housing counselors and mortgage brokers
Spread the word about Home Possible among your real estate professional, housing counselor and mortgage broker network using the following resources:
- Freddie Mac Real Estate Professionals Resource Center – Send real estate professionals to this comprehensive resource website.
- Freddie Mac Housing Counselors Resource Center – Direct the housing counselors in your network to Freddie Mac's website dedicated to serving their needs.
- Down Payment Assistance – Point your partners to DownPaymentResource.com to help them help their clients find down payment funds.
- Networking and Training Opportunities – Build your network of housing counselors and real estate professionals at these events.
- Mortgage Broker Resources – Refer to Lender Resources for more information.
Outreach to potential borrowers
Let potential borrowers know how you can help them achieve their dream of homeownership with these FREE resources:
- CreditSmart® – Steps to Homeownership: Did your borrower qualify for a Home Possible mortgage? This FREE online tutorial by Freddie Mac will help first-time homebuyers to fulfill their homeownership education requirement.
- Down Payment Assistance: Help your mortgage-ready borrower find down payment and closing cost assistance through DownPaymentResource.com.
Your Step-by-Step Mortgage Guide: From Application to Closing: Help homebuyers navigate the mortgage process so that they take the right steps to purchase their home. Add your contact information and logo to the front and back covers.
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- Does your potential borrower need homeownership information and counseling? Direct them to:
Home Possible Income & Property Eligibility Tool
Freddie Mac's map-based Home Possible Income & Property Eligibility tool makes it easy to determine if your borrower meets the income requirements for a Freddie Mac Home Possible mortgage.