Home Possible Loan Requirements Overview
To qualify for Freddie Mac's Home Possible mortgage, applicants must meet all of the following criteria:
- Income: No more than 80% of the Area Median Income (AMI)
- Credit score: 620 or higher
- Down payment: 3% or more
- Occupancy: Primary residences only
- Property type: 1–4 unit properties, condos, co-ops, PUDs, manufactured homes
- Loan size: Within conforming mortgage loan limits
Borrowers who cannot meet all of these requirements should consider other mortgage options like the Conventional 97.
📊 Key Statistic
Borrower Requirements
Eligible Home Possible applicants must meet Freddie Mac’s credit, income, and documentation standards.
| Requirement | Rule |
|---|---|
| Income | Income must be at or below 80% of the Area Median Income |
| Credit score | Minimum credit score of 620 |
| Occupancy | You need to live in the home as your main residence |
| Documentation | You need to verify your income, assets, and employment |
| Citizenship | U.S. citizens, permanent residents, and some non-permanent residents |
For more on Home Possible income rules, see our Home Possible Income Limits Guide.
For credit score details, see our Home Possible Credit Score Guide.
Property Requirements
Home Possible is a conventional mortgage so it follows Freddie Mac’s property eligibility rules.
Eligible Home Possible properties:
- 1–4 unit primary residences
- Condominiums and co-ops
- Planned Unit Developments (PUDs)
- Certain manufactured homes
Ineligible properties:
- Second homes
- Investment properties
- Non-warrantable condos
- Commercial-use properties
If you buy a 2–4 unit property, you must live in one unit as your primary residence. The other units may be rented out. For 2–4 unit purchases, Freddie Mac requires at least one borrower to complete a landlord education course before closing and at least one borrower to have one year of previous landlord experience.
And, as always, Home Possible properties must be safe, sound, and intended for sustainable homeownership.
Loan Limits
Home Possible is a conventional mortgage program, so standard conforming loan limits apply. Loan limits vary by county, property type, and number of units, including eligible condos, co-ops, and manufactured homes.
Higher limits apply in designated high-cost areas.
| Units | Standard Limit | High-Cost Limit |
|---|---|---|
| 1 | $806,500 | $1,209,750 |
| 2 | $1,032,650 | $1,548,975 |
| 3 | $1,248,150 | $1,872,225 |
| 4 | $1,551,250 | $2,326,875 |
Use our mortgage loan limit guide to check your county’s limit.
Occupancy Requirements
Home Possible loans are for primary residences only. Borrowers must intend to occupy the property within 60 days of closing and continue to live there as their primary residence.
Rules vary by property type:
| Property Type | Occupancy Rule |
|---|---|
| 1-unit home | Live in as primary residence |
| 2-unit home | Live in one unit; may rent out the other unit |
| 3-unit home | Live in one unit; may rent out other units |
| 4-unit home | Live in one unit; may rent out other units |
Your lender may request proof of occupancy as part of your approval, such as an updated driver's license or utility bills, if occupancy is in question.
Program Restrictions
The Home Possible program enforces certain rules to keep the program affordability-focused.
| Restriction | Details |
|---|---|
| Refinance | Only rate-and-term refinances are allowed; no cash-out |
| Boarder income | Up to 30% of qualifying income |
| Occupancy | Must be a primary residence |
| Reserves | 2 months for some manual underwriting |
| Non-occupant co-borrowers | Permitted for single-unit homes |
Key Takeaway
Home Possible loans are designed for low- and moderate-income borrowers who plan to live in the home they purchase. Meeting the income, credit, property, and occupancy rules is required for eligibility. If you don’t qualify, other programs may be a better fit.
Frequently Asked Questions About Home Possible Loan Requirements
Find answers to common questions about Home Possible borrower, property, and loan rules.
What is the maximum income for Home Possible?
80% of the Area Median Income (AMI) for the property location.
Can I use Home Possible for an investment property?
No. Home Possible is for primary residences only.
What is the minimum credit score?
620 for most loans, though manually underwritten loans may require higher minimums.
Are there property type restrictions?
Yes. You can use Home Possible for 1–4 unit primary residences, certain condos, co-ops, and manufactured homes that meet Freddie Mac guidelines.
Does Home Possible have a maximum loan amount?
Yes. You must stay within conforming loan limits for your property size and county.
