The Freddie Mac Home Possible^® mortgage offers more options and credit flexibilities than ever before to help your very low-to low-income borrowers attain the dream of owning a home. In addition to its down payment requirement of as little as 3%, Home Possible now offers more options to responsibly increase homeownership for more of your borrowers. Co-borrowers who do not live in the home can be included for a borrower’s one-unit residence, borrowers are permitted to have another financed property, and more –all with competitive pricing and the ease of a conventional mortgage. We’re helping you provide affordable solutions to more creditworthy borrowers so you can enhance your business and your communities at the same time.

Home Possible Mortgage Features

FLEXIBLE SOURCES OF DOWN PAYMENTS

Down payment can come from a variety of sources, including family, employer-assistance programs, secondary financing, and sweat equity.

INCOME LIMITS

Qualifying income is limited to 80% of Area Median Income (AMI), effective July 28, 2019. There are 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. Please read our FAQ about the updated Home Possible income limits effective July 28, 2019.

MAXIMUM LTV RATIOS

Low down payment with a maximum of 97% LTV, 105% TLTV with Affordable Seconds®, and 97% HTLTV for 1-unit properties.

MORTGAGE INSURANCE

Mortgage insurance (MI) on 1-unit properties can be canceled after the loan balance drops below 80% of the home's appraised value and cancellation criteria are met. MI coverage requirements are reduced for LTV ratios above 90%.

PRICING

Credit fees are capped and less than standard fees for all loans over 80% LTV.
PROPERTY TYPE/ELIGIBLE PROPERTIES

1-4 units, condos, and planned-unit developments; manufactured homes are eligible with certain restrictions.

Other 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 (video): Mortgage insurance (MI) can be canceled 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. Learn more. [PDF]