Home Possible Mortgage Mortgage Lenders
Updated Home Possible Offering
We’ve added credit flexibilities and simplified Home Possible® mortgage requirements by consolidating Home Possible and Home Possible Advantage® into a single offering. See more about the changes in Single-Family Seller/Servicer Guide (Guide) Bulletin 2018-13 [PDF]. Check out updated mortgage highlights on this page.
Maximum Financing and Flexibility – Three Percent Down Payment Solution with Expanded Options
The Freddie Mac Home Possible® mortgage offers more options and credit flexibilities than ever before to help your very low- to moderate-income borrowers attain the dream of owning a home.
In addition to its down payment requirement of as little as 3 percent, Home Possible now offers more options to responsibly increase homeownership for more of your borrowers. Do-it-yourselfers can apply sweat equity to assist in meeting their down payment and closing costs, co-borrowers who do not live in the home can be included for a borrower’s one-unit residence, borrowers can own one additional financed property, and more – all with competitive pricing and the ease of a conventional mortgage.
Watch the video to the right, and learn more below, to Discover the Possibilities with Home possible. We’re helping you provide affordable solutions to more creditworthy borrowers so you can enhance your business and your communities at the same time.
In Single-Family Seller/Servicer Guide (Guide) Bulletin 2018-13, we announced new flexibilities added to Home Possible mortgages to responsibly meet the needs of our clients and their borrowers today and in the future. Additionally, we announced the consolidation of the Home Possible and Home Possible Advantage® mortgages into a single Home Possible offering, combining the features of each individual product into one offering.
Why We’ve Made These Changes
Freddie Mac has listened to our clients’ feedback and added several credit flexibilities that will provide access to credit for more creditworthy borrowers in a greater variety of situations. By creating the single offering, we’re also providing clients with more certainty, ease of use, and operational efficiency compared to maintaining two separate mortgage offerings.
The enhanced Home Possible mortgage helps more low- and moderate-income borrowers overcome the most common obstacle to achieving the dream of homeownership – securing funds for a down payment. It continues to offer a low (3 percent) down payment option with maximum 97 percent loan-to-value (LTV) and total LTV (TLTV) ratio flexibilities. Additionally, borrowers now have the option to use sweat equity for the entire amount of their down payment and closing costs.
Get More Information
- For a snapshot of origination and underwriting requirements, see the updated Home Possible product fact sheetThis links to a pdf file
- To view the changes made August 29, 2018, see Guide Bulletin 2019-13This links to a pdf file.
- For detailed requirements for the Home Possible mortgage, refer to Guide Section 4501.