Strengthen Your Market Potential with Home Possible Mortgages
With the spring homebuying season approaching, low mortgage rates and rising home values should create a favorable purchase market environment. Many potential borrowers, including first-time homebuyers, will be seeking stable, affordable home financing. The Freddie Mac Home Possible® Mortgage continues to be a competitive mortgage option, providing low down payments and other flexibilities to help you meet more of your borrowers’ needs. Learn how Home Possible can help you can expand into new markets, including first-time homebuyers, move-up borrowers, and low- to moderate-income borrowers.
Special Affordability Features Allow You to Reach More Borrowers
Home Possible Mortgages continue to provide borrowers with low down payments and affordable financing options, as shown in following table:
|Maximum LTV/TLTV Ratios and Minimum Down Payment Requirements|
Number of Units
Maximum LTV/TLTV Ratio
Minimum Borrower Contribution for Purchase Transaction
Minimum Down Payment or Equity
|2- to 4-units||95%||3%||5%|
|Manufactured home||See Guide Section 33.3 for more details||5%||5%|
In addition, your borrowers can benefit from:
- Stable monthly payments with our fixed-rate mortgages.
- Reduced mortgage insurance coverage levels for lower monthly payments.
- Flexible closing cost funding options.
- No cash-out refinancing.
Price Change Makes Home Possible Mortgages Even More Affordable
To make it easier for first-time homebuyers to afford a home, we have reduced the delivery fee rate for Home Possible purchase transactions to 75 basis points. This reduction applies to all purchase loans eligible under Home Possible, and is effective for Home Possible Mortgages with Freddie Mac settlement dates on and after March 1, 2014. Combined with the low down payment terms and other flexibilities with this mortgage option, the revised pricing structure should help drive the volume of your Home Possible originations.
Flexibilities Create Opportunities for Community Workers
With Freddie Mac Home Possible Neighborhood Solution® Mortgages, you have even greater flexibility to help borrowers who serve in your community – like teachers, firefighters, health care workers, law enforcement officers, and military personnel – so that they can afford homes in the communities they serve.
Home Possible Mortgages Can Help You Achieve Your CRA Obligations
If your financial institution is subject to the Community Reinvestment Act (CRA), Home Possible is a highly competitive, affordable option designed to serve first-time homebuyers, low- to moderate-income borrowers, and borrowers in underserved areas. With Home Possible, you can meet the needs of a greater number of borrowers with diverse financial circumstances and generate additional CRA-eligible volume.
Boost Your Marketing Efforts with Our Home Possible Online Marketing Kit
Marketing Home Possible to your customers is a lot easier and more cost-effective with our Home Possible Mortgages online marketing kit. Available in English and Spanish, these ready-to-use materials include everything you need, from layout and design to printing specifications. Download the Home Possible Online Marketing Kit today to reach more borrowers, brokers, and real estate professionals in your community.
Sign Up for Our Free, Live Webinars
For more details on how Home Possible can help you grow your business, sign up for one of our Home Possible Mortgages webinars on March 13, 2014 or March 19, 2014. These webinars are designed exclusively for community lenders.