Freddie Mac Home Possible Mortgage: Your Path to Homeownership, Even with a Low Income
The Freddie Mac Home Possible mortgage is a government-backed loan program that offers low down payment options and flexible lending requirements to first-time homebuyers and borrowers with lower incomes.
Key features of the Freddie Mac Home Possible mortgage:
- Low down payment: Borrowers can qualify for a Home Possible mortgage with as little as 3% down.
- Flexible lending requirements: Home Possible mortgages have looser lending requirements than some other loan types. This can make it easier for borrowers with low incomes or credit scores to qualify.
- Affordable monthly payments: Home Possible mortgages have competitive interest rates and mortgage insurance premiums. This can help borrowers keep their monthly payments affordable.
Who is eligible for a Freddie Mac Home Possible mortgage?
To qualify for a Home Possible mortgage, borrowers must meet the following eligibility requirements:
- Have a credit score of at least 660
- Make a down payment of at least 3%
- Have a debt-to-income ratio of 43% or less
- Have stable income and steady employment
- Live in the home as their primary residence
- Have a household income that does not exceed 80% of the area median income (AMI) check Home Possible income and property eligibility tool to see your area’s median income.
Other requirements for Home Possible loans:
- A debt-to-income (DTI) ratio of 43% or less if the loan is approved through Freddie Mac’s automated underwriting system. Or, a DTI of 45% or less if the loan is manually underwritten
- A loan-to-value (LTV) ratio of 97% or less (meaning you put at least 3% down). If you have multiple home loans or a second mortgage — used to cover the down payment, perhaps — the LTV max is 105%
- Non-occupant co-clients are allowed in this program, which means you can qualify with the income of a parent or other individual who agrees to co-sign the loan with you
Is the Freddie Mac Home Possible mortgage right for me?
The Freddie Mac Home Possible mortgage can be a great option for first-time homebuyers and borrowers with lower incomes. However, it is important to compare this program to other mortgage options before making a decision. You should also work with a qualified mortgage lender (like myself) to get pre-approved for a loan and determine how much you can afford to borrow.
How to apply for a Freddie Mac Home Possible mortgage
To apply for a Home Possible mortgage, you can contact our team or get started on a application here and let us help you get the loan you need to buy your dream home.