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Dec 1 2019

Home Possible Mortgages Overview – Freddie Mac, home mortgages.

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Home PossibleВ® Mortgages

Home mortgages

Home Possible mortgages offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities.

Watch the video to the right, and learn more below, to Discover the Possibilities with Home Possible.

Which Home Possible Mortgage is Right For Your Borrower?

Home Possible:

  • LTV: Maximum LTV and TLTV of 95 percent.
  • Property Options (video): 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 and secondary financing.
  • Cancellable Mortgage Insurance (video): Mortgage insurance (MI) can be cancelled after loan balance drops below 80 percent of the home’s appraised value.
  • Mortgage Flexibility: 15- to 30-year fixed-rate mortgages, 5/1, 7/1 and 10/1 ARMs.
  • Refinance Options (video): No cash-out refinancing option is available for borrowers who occupy the property.
  • Income Flexibility (video): Borrowers with incomes above AMI may be eligible in high-cost areas. No income limits in underserved areas. Use the Home Possible Income Property Eligibility Tool to see income limits for specific properties.
  • No Credit Score Necessary (video): Borrowers without credit scores are eligible for mortgages with down payments as low as five percent. Learn more.

Home Possible Advantage:

  • LTV: Maximum LTV of 97 percent; TLTV 105 percent.
  • Property Options: 1-unit properties, condos and planned unit developments; manufactured homes are not eligible.
  • Flexible Sources of Down Payments: Down Payment can come from a variety of sources, including family, employer-assistance programs and secondary financing.
  • Cancellable Mortgage Insurance (video): Mortgage insurance (MI) can be cancelled after loan balance drops below 80 percent of the home’s appraised value.
  • Stable Mortgages: Fixed-rate mortgages with a term of up to 30 years.
  • Refinance Flexibility (video): Purchase and no cash-out refinancing options available.
  • Income Flexibility (video): Borrowers with incomes above AMI may be eligible in high-cost areas. No income limits in underserved areas. Use the Home Possible Income Property Eligibility Tool to see income limits for specific properties.
  • Primary Residence Only: All borrowers must occupy the property as their primary residence.

Information for lenders

Freddie Mac Home Possible mortgages are designed to grow your business and attract low- and moderate-income borrowers, first-time homebuyers, and underserved communities. Use the resources below and discover why a Home Possible mortgage may best fit for your borrowers’ needs.

  1. Get the facts about Home Possible and Home Possible Advantage:

Home mortgages

Home mortgages

need to know about

Home Possible mortgages

Freddie Mac s 97%

Home Possible Advantage?

Home mortgages

Home mortgages

Advantage may be right

for your borrowers

Other Things You Need to Know:

  • Home Possible Income Property Eligibility tool Use this quick lookup tool to see if your borrower meets the income requirements for a Home Possible mortgage, or if the home they’re interested in is located in an underserved area.
  • 2016 Loan Limits See if your loan meets Freddie Mac loan limit requirements.
  • Down Payment Assistance Help your borrower find down payment programs in your area.
  • Training Opportunities Take a deep dive and learn how to originate Home Possible mortgages.
  • Find details on Home Possible mortgages in Chapter 4501 of The Single-Family Seller/Servicer Guide.

Reach out to real estate professionals, housing counselors and mortgage brokers

Spread the word about Home Possible among your real estate professional, housing counselor and mortgage broker network using the following resources:

Home mortgages

Home mortgages

Outreach to potential borrowers

Let potential borrowers know how you can help them achieve their dream of homeownership with these FREE resources:

  1. CreditSmart Steps to Homeownership: Did your borrower 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: Help your mortgage-ready borrower find down payment and closing cost assistance through DownPaymentResource.com.
  3. Place your logo on these marketing materials and reach out to potential homebuyers (See Instructions, Terms of Use and Print Specs):

Home mortgages



Written by CREDIT