Program: Freddie Mac Home Possible
Detail Verified 4/17/2019 - Last Updated 4/17/2019
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.
This program is available nationwide.
Who is Eligible for this Program?
This program is available to all buyers whose incomes are at or below 100% of the area median income and who do not own any other property. A 3% to 5% minimum down payment is required, however, this can come from a variety of sources, including family, employer-assistance programs, and secondary financing.
There will continue to be no income limit for properties located in low-income census tracts, where the median income is at or below 80 percent AMI.
Buyers with an income above 100% AMI may be eligible in high-cost areas.
The program can be used to purchase or refinance a home.
Is this program for first time buyers only?: No
Property Eligibility Requirements
Allowable property types: Properties eligible for Home Possible loans include 1-4 unit primary residences and manufactured homes.
Benefit: This program conforms to the Federal Housing Finance Agency's (FHFA) loan limits. The current loan limit for Clackamas, Multnomah, and Washington Counties is: $453,100. The program offers 15 to 30 year fixed rate mortgages and adjustable rate mortgages. Mortgage insurance is required, but cancellable after certain requirements are met.
Homebuyer Counseling / Education Required: Yes
Owner Occupancy Required: Yes
Other Program Comments: Homebuyer education is required for first-time homebuyers and those using Noncredit Payment References