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Home Possible®: More Opportunity for Greater Affordability

May 25, 2016

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Freddie Mac Home Possible® mortgages offer flexible credit terms and low down payment options. A Home Possible mortgage can meet the home financing needs of low- and moderate-income borrowers looking for low down payments and flexible sources of funds.

There is a new postsettlement delivery fee cap structure that applies to Home Possible and Home Possible Advantage® mortgages that helps extend greater affordability to qualified borrowers. The delivery fee cap is effective for mortgages with settlement dates on or after July 1, 2016.

With this new delivery fee cap structure, you only need to consider the loan-to-value (LTV) ratio and the borrower’s credit score to determine if the zero or 1.50 percent delivery fee cap applies, as shown below:

 LTV RatioCredit ScoreDelivery Fee Cap
All eligible Home
Possible and Home
Possible Advantage
mortgages
>80% ≥680 0.0%
<680 1.50%
≤80% All 1.50%

Additionally, you no longer need to deliver IFI "140" for Home Possible mortgages if the income used to qualify the borrower does not exceed 80 percent of AMI or for properties in an underserved area.

Now is a great time to take advantage of the flexible options provided by Home Possible and Home Possible Advantage. For details on Home Possible mortgage postsettlement delivery fees, see Exhibit 19.

To compare Home Possible and Home Possible Advantage product features, visit the Home Possible Mortgages web page. While you’re there, check the “Resources” section, where you’ll find links to customizable mortgage product marketing material, training information and much more that can help you market these products to eligible homebuyers.

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