Home Possible Mortgages
Offers Flexible Credit Terms and Low Down Payment Options
Review Single-Family Seller/Servicer Guide Bulletin 2015-21 for changes effective for Home Possible mortgages with Freddie Mac settlement dates on or after July 1, 2016.
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 Advantage® 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 details on:
|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 for LTV ratios greater than 90 percent
- 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.
- Comparison of Home Possible Mortgage Products
- Home Possible Advantage: A Smart Choice for Affordable Lending
- Affordable Income & Property Eligibility Tool
- Free, customizable mortgage product marketing material
- Home Possible training opportunities
- Use our Affordable Seconds® checklist to help you determine if your borrower’s secondary financing is eligible behind their first lien mortgage.
CreditSmart – Steps to Homeownership Tutorial
Help your buyers satisfy their Home Possible homeownership education requirement with CreditSmart – Steps to Homeownership. Learn More