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Home Possible Mortgages

Offers Flexible Credit Terms and Low Down Payment Options

Important Notice

This page reflects the revised requirements announced in Single-Family Guide
Bulletin 2014-18. The updated requirements are effective for mortgages with
Freddie Mac settlement dates on or after November 24, 2014.

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 borrowers looking for low down payments and flexible sources of funds, including first-time homebuyers, move-up borrowers, retirees, families in underserved areas, recent immigrants, very low and low- to moderate-income borrowers.

Product Features

Property Types
  • 1- to 4-unit primary residences
  • Condos
  • PUDs
  • Manufactured homes (with additional requirements)
Eligible Mortgage Products
  • Fixed-rate mortgages.
  • Adjustable rate mortgages (ARMs) including 5/1, 7/1, and 10/1 ARMs.
  • Home Possible mortgages with Rural Housing Service (RHS) Leveraged Seconds meeting the requirements in Single-Family Seller/Servicer Guide (Guide) Chapter 35.
  • Construction Conversion and Renovation Mortgages originated according to Guide Chapter K33.
Maximum LTV/TLTV Ratios
  • Maximum LTV/TLTV/HTLTV ratio of 95 percent for purchase and “no cash-out” refinance transactions.
  • 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.
Homebuyer Education
  • Homeownership education is required before the note date or the effective date of the permanent financing for Construction Conversion and Renovation Mortgages, for at least one qualifying borrower when all borrowers are first-time homebuyers.
  • Homeownership education must be provided by a party not involved in the sale or financing of the property; if provided by the originating lender or by the Seller, the homeownership education must be conducted by someone not directly involved in the loan origination, processing, or approval process.
  • A copy of Exhibit 20, Homeownership Education Certification, or another document containing comparable information must be retained in the mortgage file. The following types of homeownership education are acceptable:
      • Internet-based homeownership education programs that have been developed by mortgage insurance companies
      • Homeownership education programs that meet the standards of the National Industry for Homeownership Education and Counseling
      • Programs using the Freddie Mac CreditSmart® financial education curriculum, provided modules 1, 2, 7, 11 and 12 are included.
Execution Options
  • Servicing-Released Cash
  • Servicing-Retained Cash
  • WAC ARM Cash
  • Fixed-Rate Guarantor
  • WAC ARM Guarantor
  • MultiLender Swap

Use Freddie Mac's selling system for easy secondary market sale.

Delivery Fees
  • Special postsettlement delivery fees are applicable to Home Possible mortgages. See Guide Exhibit 19 for more details.
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.

Lender Benefits

Home Possible Mortgages help you:

  • Expand your borrower base and tap new markets such as low- and moderate-income borrowers, first-time homebuyers, recent immigrants, 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:

  • 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

Training Opportunities

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

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