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.
Who Is Home Possible® For?
- Borrowers desiring a low down payment solution with flexible sources of funds.
- Very low-to low-income borrowers.
- First-time homebuyers, move-up borrowers and retirees.
The information on this page is not part of, and is not a replacement or substitute for, the requirements found in the Freddie Mac Single-Family Seller/Servicer Guide and your other Purchase Documents.
Discover the Possibilities With Home Possible®
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 Toolto see income limits for specific properties or submit to Loan Product Advisor® to determine Home Possible income eligibility.
- 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 cancelled after 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%.
Credit fees are capped and less than standard fees for all loans over 80% LTV.
- Property Type/Eligible Properties
1-4 units, condos, co-ops and planned-unit developments; manufactured homes are eligible with certain restrictions.
Growing Your Business
From valuable training and networking events to advanced tools and applications that help you work smarter, Freddie Mac has the resources you need to expand into new markets and grow your revenues.
- Expand your market opportunity: Accommodate borrowers in a wide range of life stages from millennials purchasing their first home, to move-up borrowers and retirees considering downsizing.
- Expand your business by meeting a greater variety of client needs: Offer enhanced credit flexibilities to meet the needs of diverse individual borrower situations, giving them the practical solutions to own a home.
- Overcome the down payment barrier: Capitalize on a low 3 percent down payment solution and lend up to 105 percent TLTV with an Affordable Second® on a 1-unit property.
- Benefit from certainty: Choose to qualify through Loan Product Advisor for greater certainty in the loans you sell to Freddie Mac.
Benefits to Your Borrowers
- Realize the milestone of homeownership without the barrier of gathering a 20 percent down payment.
- Apply sweat equity for up to the entire amount of the down payment and closing costs.
- Non-occupying co-borrowers can contribute to borrower funds on one-unit properties.
- Cancel mortgage insurance upon reaching 20 percent equity, reducing the monthly mortgage payment and potentially saving thousands over the life of the loan.
- Enable empowered decisions and life-long responsible homeownership with required homeownership education, which can be fulfilled by Freddie Mac’s online, free CreditSmart® tutorials.
Home Possible Resources
Very Low-Income Purchase (VLIP) Mortgage Credit FAQ
Learn more about the $2,500 credit available to potential homebuyers earning 50% of area median income (AMI) or less.
Home Possible® Income & Property Eligibility Tool
Home Possible® mortgage income limits assist in helping very low- to low-income borrowers reach their dreams of homeownership.
Home Possible® Mortgage Flyer
Overview of the Home Possible Mortgage and its benefits for lenders and borrowers.
Home Possible® Mortgage Factsheet
Details about Home Possible and how it can assist very low- to low-income borrowers.
Home Possible RISE Awards®
The winners of the RISE (Recognizing Individuals for Sustained Excellence) Awards are top producers of our Home Possible mortgage.
Freddie Mac Affordable Seconds® is designed to help meet the needs of borrowers who require flexible secondary financing options to increase their homeownership opportunities.
Loan Advisor® uncovers hidden value for your business. Our data and models reveal opportunity at every stage of the lending process.
Training: How to Use Freddie Mac Tools for Home Possible VLIP Credit
Want to learn more about the new assistance for very low-income purchase (VLIP) borrowers who qualify for Freddie Mac’s Home Possible mortgage? This resource provides the information and steps you need to know when using our Freddie Mac Loan Advisor tools.
Training: Grow Your Business with Home Possible®
This tutorial shows how Home Possible can help your very low- to low-income borrowers with credit flexibilities, low down payments and options for sources of funds.
Training: Home Possible® Income Eligibility Tutorial
Learn more about income eligibility requirements in determining area median income limits for Home Possible mortgages.
The same content you depend on, but more streamlined, intuitive and usable, with a modern look, robust search and improved functionality.
Low Down Payment Solutions: Home Possible® and HomeOne® Webinar
Explore the benefits and differences between these two low down payment offerings to help your clients realize their dream of homeownership.
Affordable Seconds® and Enhanced Loan Product Advisor® Clip
You asked we delivered - learn more about the functionality for entering Affordable Seconds with the enhanced version of Loan Product Advisor.
Home Possible Mortgage Requirements in the Single-Family Seller/Servicer Guide
Outreach to Potential Borrowers
Let potential borrowers know how you can help them achieve their dream of homeownership with these FREE resources.
My Home by Freddie Mac®
Whether your borrowers rent, own, or plan to buy, we offer the resources to help make informed decisions and support their success.
CreditSmart® is a suite of educational resources designed to empower consumers with the skills and knowledge to assist them through every stage of their financial capability and homeownership journey.