The Freddie Mac -Home Possible Mortgage

The Freddie Mac Home Possible® mortgage now offers many more options and credit flexibility than it ever has before to help the very low to moderate-income borrowers attain their dream of home ownership.

In addition to the down payment option of as little as three percent, Home Possible now offers more options to enable home ownership for more  borrowers. Do-it-yourself fixer uppers can apply sweat equity to assist them in meeting their closing costs and down payment, co-borrowers who do not live in the home can be included for a borrower’s one-unit residence, borrowers can even own one additional financed property, and more – all with very competitive pricing and the ease of a conventional mortgage.

Home Possible Mortgage Benefits

  • Realize the milestone of homeownership: without the barrier of gathering a 20 percent down payment.
  • Apply sweat equity: for up to the entire amount of the down payment and closing costs.
  • Non-occupying co-borrowers can contribute: to borrower funds on one-unit properties.
  • Cancel mortgage insurance: upon reaching 20 percent equity, reducing the monthly mortgage payment and potentially saving thousands over the life of the loan.
  • Enable empowered decisions: and life-long responsible homeownership with required financial literacy education, which can be fulfilled by Freddie Mac’s online, free CreditSmart® tutorials.
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Home Possible Mortgage Features

  • Mortgage Loan Features

    • Loan to Value (LTV) Ratios: Low down payment with a maximum of 97% LTV, 105% TLTV, 97% HTLTV for 1-unit properties.
    • Property Options: 1-4 units, condos and planned-unit developments; manufactured homes are eligible with certain restrictions.
    • Flexible Sources of Down Payments: Down payment can come from a variety of sources, including family, employer-assistance programs, secondary financing, and sweat equity.
    • Mortgage Insurance: Mortgage insurance (MI) can be cancelled after loan balance drops below 80 percent of the home's appraised value, and MI coverage requirements are reduced for LTV ratios above 90 percent.
    • Pricing: Credit fees are capped and less than standard fees for all loans over 80 percent LTV.
    • Mortgage Flexibility: 15- to 30-year fixed-rate mortgages; 5/1, 5/5, 7/1 and 10/1 ARMs; super conforming mortgages.
    • Refinance Options: No cash-out refinancing option is available for borrowers who occupy the property.
    • Income Flexibility: No income limits in low-income census tracts, and otherwise limited to 100 percent Area Median Income (AMI). No geographic limits on loan amounts. Use the Home Possible Income & Property Eligibility Tool to see income limits for specific properties or submit to Loan Product Advisor® to determine Home Possible income eligibility.
    • No Credit Score Necessary: Qualified borrowers without credit scores are eligible for mortgages with down payments as low as 3 percent.

    * Mortgage features are subject to additional requirements.

  • Capitalize on a low 3 percent down payment solution and borrow up to 105 percent TLTV with an Affordable Second® on a 1-unit property.

Freddie Mac Home Ready Mortgage Resources

  1. CreditSmart® – Steps to Homeownership: Do you qualify for a Home Possible mortgage? This FREE online tutorial by Freddie Mac will help first-time homebuyers to fulfill their homeownership education requirement.
  2. Down Payment Assistance: Reach out to for a list of downpayment assistance resources.

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