Home Possible Credit Score Requirements: Complete Guide

Credit Score Overview

Home Possible requires a minimum 620 middle credit score for loans with one borrower. For loans with multiple borrowers, Freddie Mac averages each borrower’s middle score and the average must be at least 620 minimum.

Home Possible is an affordable mortgage program, which means borrowers are not subject to loan-level price adjustments (LLPAs) and other risk-based costs, regardless of their middle credit score.

Minimum Credit Score Requirement

620 is the minimum credit score threshold for the Home Possible mortgage program. For mortgage applications with one borrower, the middle credit score is determined as follows:

• If the borrower has three credit scores, the middle score is used
• If the borrower has two credit scores, the lower score is used
• If the borrower has only one credit score, that score is used

For loans with multiple borrowers, Freddie Mac uses the average of each borrower’s middle score.

Example: Two Borrowers and Credit Score Averaging

In this example, Freddie Mac averages the borrowers' middle scores — 654 and 708 — to get a qualifying credit score of 681, which meets the Home Possible minimum credit score requirement of 620.

Borrowers without a credit score can qualify for Home Possible, too, by documenting their non-traditional credit history, such as consistent on-time payment of rent and utilities.

If your lender does not offer non-traditional underwriting, try another lender.

Home Possible Credit Score Quick Reference

How Credit Scores Affect Home Possible Pricing

Standard conventional loans apply loan-level pricing adjustments (LLPAs) that change a person's interest rate or costs based on credit score and down payment. Home Possible is an affordable mortgage program that waives these risk-based changes.

If you are eligible for Home Possible, you get the same interest rate whether your credit score is 620 or 850.

The “no-LLPA” policy makes Home Possible especially attractive for borrowers with lower credit scores.

Here’s an example comparing standard conventional and Home Possible mortgage pricing. One percentage point of cost is roughly equivalent to a +0.25% change in mortgage rate.

Home Possible LLPA Comparison

Note: Your credit score works alongside the Home Possible Income Limits to determine eligibility. Even with an excellent score, your income must still be within the program’s 80% AMI cap.

How Credit Scores Affect Home Possible PMI Mortgage Insurance

Home Possible requires private mortgage insurance (PMI) when the buyer makes a down payment of less than 20%, or when the home has less than 20% equity. But, Home Possible is an affordable mortgage program so it requires less PMI than comparable conventional loans.

PMI costs vary by credit score and LTV. A person with a 620 credit score will generally pay more for insurance than someone with a 760 score, and a person making Home Possible's minimum 3% down payment will generally pay more for insurance than someone putting down 10%. Everyone, however, can expect to pay less for PMI on Home Possible than with a standard conventional mortgage.

And like other conventional loans, Home Possible PMI can be canceled once your home's equity reaches 20 percent.

For more information, see our Home Possible PMI Guide.

Key Takeaway

Home Possible requires a minimum credit score of 620 . Freddie Mac averages the median scores of multiple borrowers to test for eligibility, and waives LLPAs for credit score — making the program especially valuable for buyers with average or below-average credit.

Related Resource

See our Home Possible Complete Guide for the full program overview.