Home Possible Mortgages
Offers Flexible Credit Terms and Low Down Payment Options
This page reflects the requirements for Home Possible AdvantageSM introduced announced in Single-Family Guide Bulletin 2014-22. The Home Possible Advantage offering will be available for mortgages with Freddie Mac settlement dates on or after March 23, 2015.
Freddie Mac Home Possible® mortgages offer outstanding flexibility and options to meet a variety of borrowers' needs. With Home Possible, you'll capitalize on opportunities to meet the home financing needs of low- and moderate-income borrowers looking for low down payments and flexible sources of funds.
Freddie Mac Home Possible AdvantageSM offers more flexibility for maximum financing. This offering adopts the responsible and affordable flexibilities of Home Possible, but with additional requirements.
|Feature||Home Possible||Home Possible Advantage|
|Eligible Mortgage Products||
|Maximum LTV/TLTV Ratios||
|Eligibility/Underwriting||A Home Possible mortgage may be submitted to Loan Prospector® or may be a manually underwritten mortgage. See Guide Section A34.8 for credit underwriting requirements.|
|Requirements for Minimum Borrower Contribution and Sources of funds||See Guide Section A34.10 for requirements on minimum contributions from borrower personal funds, reserves and permitted sources of funds.|
See Guide Section 34.12 for homeownership education and landlord education requirements related to:
See Guide Exhibit 19 for:
|Special Delivery Requirements||See Guide Section 17.18(b) for special delivery instructions for Home Possible mortgages.|
|Single-Family Seller/Servicer Guide||Refer to Guide Chapter A34.|
Download a Home Possible Mortgage fact sheet for more details.
Home Possible Mortgages help you:
- Expand your borrower base and tap new markets such as low- and moderate-income borrowers, first-time homebuyers, and underserved communities.
- Leverage a continuing, competitive, and affordable option, with high-LTV lending for borrowers with strong credit.
- Enhance your Community Reinvestment Act (CRA) eligible originations.
Benefits for Your Borrowers
Home Possible mortgages provide your borrowers with:
- A low down payment option
- Stable monthly mortgage payments with fixed-rate mortgages
- Flexible closing cost funding options
- Reduced mortgage insurance coverage levels
- No cash-out refinancing
For More Information
- Call your Freddie Mac representative
- Print a Home Possible Mortgages fact sheet
Visit The Learning Center for live and recorded web conferences, access to classroom-style workshops and self-study tools – all designed to help you stay competitive, serve more borrowers and make it easier to do business with us.
The information in this document is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or Master Commitment.
CreditSmart – Steps to Homeownership Tutorial
Help your buyers satisfy their Home Possible homeownership education requirement with CreditSmart – Steps to Homeownership. Learn More