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Home Possible® is the branded name of Freddie Mac’s 3 percent down, low down payment mortgage. It’s an affordable mortgage program for first-time home buyers, repeat buyers, and refinancing households.
Freddie Mac created Home Possible to help low- and moderate-income households achieve their American Dream of homeownership.
The program lowers mortgage rates for eligible home buyers and subsidizes costs. Home Possible homeowners pay less to buy and own property than the typical U.S. home buyer.
Higher-income households may also qualify for Home Possible.
No particular action is required to apply for a low down payment home Home Possible mortgage. Mortgage applications are sorted into the program automatically.
Home Possible eligibility standards are straightforward.
Home Possible is for primary residences only. Homebuyers cannot use it to finance a second home, a rental property, or an investment. Co-signers are allowed and not required to live in the home. At least one person listed on the mortgage must live in the home.
Home Possible applies to single-family residences and multi-unit homes. Homes may be either standalone or attached to another home, as with townhomes or rowhomes. Condos are eligible for Home Possible, and certain manufactured homes are eligible, too.
Home Possible is a Freddie Mac mortgage program, which means that loans must meet conventional mortgage guidelines. Loans must fall within conforming mortgage loan limits, amortize over 15 or 30 years, and use a fixed-rate or adjustable-rate mortgage structure. Your income must be verifiable.
Home Possible lets home buyers finance up to 97 percent of the purchase price. Buyers must bring a minimum down payment of three percent. Home Possible lets buyers use down payment assistance from most sources, including cash gifts from family or friends, grants, employer assistance programs, second mortgages, and sweat equity.
Home Possible is an affordable mortgage program. It’s available to low- and moderate-income households only. Household income for eligible buyers may not exceed eighty percent of the area median income, which mortgage applicants can verify at the Freddie Mac website.
Home buyers who earn too much money for Home Possible can access other low down payment loans, including Fannie Mae’s HomeReady mortgage and the Conventional 97 programs.
Home Possible allows home buyers to have a financial interest in one other mortgaged property, at most, which may be a vacation home or investment property. There are no restrictions on commercial property investments.
Home Possible requires a minimum credit score of 660 for fixed-rate mortgages and 680 for adjustable-rate mortgages and manufactured homes. Freddie Mac’s credit scoring uses the mortgage FICO system, which ignores medical debt and collections. 2-4 unit homes may require higher credit scores to qualify.
Freddie Mac requires first-time home buyers to complete a homeownership education course as part of their Home Possible approval. HUD-certified homeownership classes are available online and take approximately two hours to complete. Homeownership education reduces mortgage default risk by 42 percent.
Home Possible is an affordable mortgage program for low- and moderate-income households. Eligible home buyers get access to lower mortgage rates than the general population.
A typical Home Possible buyer will receive mortgage rates 0.25 percentage points below today’s mortgage rates. Buyers with high credit scores can receive discounts of a half-percentage point.
Home Possible subsidizes private mortgage insurance (PMI) for buyers, too.
First-time home buyers pay up to thirty basis points less for private mortgage insurance, which helps to make homes more affordable.
Home Possible buyers can pay $600 less per $100,000 borrowed per year than other first-time buyers.
Home Possible is an affordable mortgage program for low- and moderate-income households. Freddie Mac defines low-to-moderate income as earning less income annually as compared to your nearest neighbors.
Low- and moderate-income home buyers may not earn more than eighty percent of the typical household income for their new home’s census tract, which can be viewed on the Freddie Mac website.
Home Possible Income limits vary by neighborhood. Eligible buyers get access to 3-percent-down mortgages, reduced interest rates, and lower monthly payments.
Verify your Home Possible eligibility with a mortgage pre-approval.
Home Possible is one of 7 government-backed, low down payment mortgage loans. It offers low mortgage rates and reduced mortgage insurance premiums to first-time home buyers and other homeowners.
Here are other low-down payment mortgage options from which you can choose.
See all home loans for first-time buyers.
You may qualify for federal home buyer tax credits and local down payment assistance.
Get pre-approved to check your eligibility.
Freddie Mac’s Home Possible has slightly higher credit scores minimums and income limitations than Fannie Mae’s Homeready. Home Possible also does not allow home buyers to apply boarder and accessory unit income to their application.
Home Possible | HomeReady | |
Minimum Down Payment | 3% | 3% |
Minimum Credit Score | 660 | 620 |
First-Time Buyers | Yes | Yes |
Income Limitations | Yes | Yes |
Boarder Income | Not Allowed | Allowed |
ADU Income | Not Allowed | Allowed |
PMI Discounts | Yes | Yes |
Home Possible requires a 660 minimum credit score for purchases of a single-family home using a fixed-rate mortgage. Home Possible requires a 680 minimum credit score when buyers use an adjustable-rate mortgage. Buyers of multi-unit properties may require a 700 minimum FICO.
Yes, Home Possible is available to home buyers with no credit score. Mortgage lenders can approve your loan application using alternative payment history.
Home Possible requires a minimum down payment of three percent. Down payment money can come from any eligible source, including savings, cash gifts, employer benefits, and unsecured loans.
There is no explicit debt-to-income maximum for Home Possible. The program considers income, debt, credit history, and other factors for your mortgage approval. If your monthly debts exceed 43 cents for every earned dollar, other low down payment mortgage loans may be available to you.
No, Home Possible is for first-time home buyers, repeat buyers, and refinancing households.
Home Possible requires higher credit scores and allows home buyers to get their down payment money from a third-party source. Fannie Mae’s Home Ready requires buyers to bring at least three percent of their own money to a purchase.
Yes, home buyers can use cash gifts for a down payment with the Home Possible mortgage program.
Freddie Mac’s Home Possible allows buyers to purchase 2-unit, 3-unit, and 4-unit homes. Home buyers must live in one of the home’s units.
Yes, home buyers can use adjustable-rate mortgages with Home Possible. Freddie Mac enforces a 680 minimum credit score for buyers with ARMs.
Yes, home buyers without a credit score can use Home Possible to purchase a home.
No, Freddie Mac is not a mortgage lender. Home buyers can apply for Home Possible and verify their eligibility with any mortgage lender.
No, the minimum down payment requirement with Home Possible is 3 percent.
Home Possible mortgage rates are available as part of a 3-minute pre-approval.
Wave goodbye to waiting times and say hello to our Immediate Mortgage Approval. It's more than just a mortgage - it's your ticket to home-buying freedom, available anytime you are. With ultra-low rates at your fingertips, the power to secure your future is just a click away. Why wait for office hours? Your home doesn't.
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What is a Starter Home?
Home Possible® is the branded name of Freddie Mac’s 3 percent down, low down payment mortgage. It’s an affordable mortgage program for first-time home buyers, repeat buyers, and refinancing households. Freddie Mac created Home Possible to help low- and moderate-income households achieve their American Dream of homeownership. The program lowers mortgage rates for eligible home […]
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