Home Possible Mortgage
Home Possible Mortgage Program Affordable, Flexible Financing for First-Time and Moderate-Income
Buyers The Home Possible mortgage, offered through Freddie Mac, is designed to make homeownership more accessible for first-time and low-to-moderate-income borrowers. It provides flexible credit terms, low down payment options, and reduced costs, helping more families achieve their dream of owning a home.
Why Choose the Home Possible Program The Home Possible mortgage provides the stability of a conventional loan with the flexibility of a first-time buyer program. It’s especially powerful when paired with Down Payment Assistance (DPA) programs - helping buyers cover closing costs and achieve homeownership with minimal cash out of pocket.
What Is the Home Possible Mortgage?
Home Possible is a conventional mortgage program backed by Freddie Mac. It offers an affordable alternative to FHA loans with as little as 3% down and reduced mortgage insurance costs. The program is ideal for buyers who have steady income and decent credit but may not have a large down payment saved.
Key Benefits
Low Down Payment - As Little As 3%Buy your first home or move up with just 3% down, making it easier to start building equity sooner.
Reduced Mortgage Insurance (PMI)Enjoy lower PMI premiums than standard conventional loans, and PMI can be canceled once you reach 20% equity.
Flexible Sources of Funds Your down payment can come from gifts, grants, or approved assistance programs - no personal savings required.
Refinance Options Available for rate-and-term refinancing to lower your monthly payment or switch loan terms.
Co-Borrowers Allowed Family members who don’t live in the home can co-sign to help you qualify, giving you more flexibility in income qualification.
Homeownership Education Only one borrower needs to complete an approved homeownership education course - helping you prepare for the financial responsibilities of owning a home.
Basic Eligibility Requirements To qualify for Home Possible:
Credit Score: Minimum 620 (higher scores may qualify for better rates)
Income Limit: Total borrower income must be below 80% of the Area Median Income (AMI) for the property location
Occupancy: Must be your primary residence Property Types: 1- 4 unit homes, condos.
Education: At least one borrower must complete a homebuyer education course (online or in person)
You can check your local income limits using Freddie Mac’s Home Possible Income & Property Eligibility Tool.