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Updated Home Possible Mortgage Available

October 29, 2018

Starting today, you can submit to Loan Product Advisor® and deliver Home Possible® mortgages with new flexibilities and advantages for your borrowers.

We consolidated Home Possible with our Home Possible Advantage® offering and expanded several requirements to increase your pool of mortgage-ready borrowers. Now known simply as the Home Possible mortgage, it’s easier to manage as a single offering and gives your borrowers more options.

More Flexibility, More Possibility

The combined Home Possible is a three percent down solution for borrowers throughout the spectrum of life stages: buying for the first time, moving to an upgraded property or downsizing to something more manageable in retirement. To accommodate the range of needs in this diverse group of borrowers, we’ve implemented more flexible options to help borrowers qualify for an affordable mortgage solution.

We are:

  • Allowing non-occupying co-borrowers on 1-unit properties when one borrower lives in the home as their primary residence.
  • Allowing ownership of other property without restrictions.
  • Adding super conforming mortgages with a Loan Product Advisor Accept risk class to help qualified borrowers in geographical areas with higher property values.
  • Reducing documentation for rental income to average nine months of income over the previous 12 months.
  • Increasing debt-payment-to-income ratio to 45 percent for manually underwritten mortgages.
  • Allowing adjustable rate mortgages (ARM) on 3- to 4-unit properties up to 75 percent LTV.

Submit Home Possible Today

You can start submitting Home Possible mortgages to Loan Product Advisor and delivering them as early as today.

For clients who are also originating Home Possible Advantage, those mortgages will continue to be accepted through Freddie Mac Loan Advisor℠ until at least September 30, 2019.

For More Information

  • Read the August 29 Single-Family Seller/Servicer Guide (Guide) Bulletin 2018-13
  • Check out our FAQs on the combined Home Possible offering
  • View the updated Home Possible fact sheet