In the Spotlight
October 20, 2017
What’s the most persistent myth in real estate? Many homebuyers think they need to put down 20 percent, or one-fifth, of the cost of their home, but that’s just not true. Bust the one-fifth myth for your clients.
Bust the One-Fifth Myth with Home Possible®
For many buyers, the 20 percent down payment may seem like an insurmountable obstacle on their path to homeownership.
Designed for low- to moderate-income homebuyers, Freddie Mac Home Possible® mortgages can help your clients buy their dream homes with as little as three percent down payment.
3% Down and Flexible
Three percent down is a great starting point, but Home Possible mortgages also offer your clients the flexibility that makes it a strong option:
- The low down payment doesn't need to come directly from the homebuyer: Gifts from family, grants from eligible agencies and employer assistance programs can all help your client reach their three percent down payment.
- Income limits as high as the AMI: While there are income limits on Home Possible mortgages, your clients might be eligible even if they make up to the area median income (AMI), and more in high-cost or underserved areas. Not sure about income limits in your area? Enter an address into the Home Possible Income and Property Eligibility tool.
- Saving money even after closing: Mortgage insurance (MI) is an added cost for homebuyers putting less than 20 percent down, but it doesn’t have to last the life of the loan. Home Possible mortgages let your clients cancel their MI once they’ve paid off 20 percent of the loan’s value, potentially saving hundreds of dollars a month.
Clear the Path to Homeownership
Ask lenders in your network if they offer Home Possible mortgages. Know your clients' needs and make smart referrals. Closing day confidence comes when a homebuyer is paired with the right mortgage solution.
Homeowner Success with Home Possible
Three homebuyers, and the loan officers who helped them, tell their stories and discuss what made Home Possible the right option.
Learn More to Earn More
- Home Possible Mortgages fact sheet.
- Quick Home Possible online tutorial.
- Free Home Possible training/networking events (click on "Training Opportunities" tab.
- Freddie Mac Real Estate Professionals Resource Center.