What is a Home Possible® Mortgage Loan?
A Home Possible® Mortgage Loan is a flexible and affordable loan program from Freddie Mac designed to help low-to-moderate income borrowers and first-time homebuyers achieve homeownership. It features low down payment requirements and flexible credit...
Continue ReadingWho is eligible for a Home Possible® Mortgage Loan?
Home Possible® Mortgage Loans are available to creditworthy low-to-moderate income borrowers. Income limits typically apply, and your income must generally be at or below 80% of the area median income (AMI) for the location of the property. The program...
Continue ReadingWhat are the down payment requirements for a Home Possible® Mortgage?
The minimum down payment required for a Home Possible® Mortgage is as low as 3% of the home's purchase price. This low down payment option makes it easier to afford a new home without a large upfront...
Continue ReadingCan I use gift funds or grants for my down payment?
Yes, Home Possible® allows you to use gift funds from relatives, friends, or other eligible sources for your down payment and closing costs. Grants and down payment assistance programs can also be...
Continue ReadingWhat types of properties are eligible for Home Possible® Mortgages?
Home Possible® Mortgages can be used to finance various types of properties, including single-family homes, condominiums, and multi-unit properties (up to four units). The property must be used as your primary...
Continue ReadingWhat are the credit score requirements for a Home Possible® Mortgage?
The minimum credit score required for a Home Possible® Mortgage is typically 620. However, having a higher credit score can improve your chances of qualifying and securing better interest...
Continue ReadingWhat is the debt-to-income (DTI) ratio requirement?
Your debt-to-income ratio should generally not exceed 50%. This means that your total monthly debt payments, including your new mortgage, should be 50% or less of your gross monthly...
Continue ReadingIs homeownership education required?
Yes, Home Possible® requires first-time homebuyers to complete a homeownership education course from an approved provider, such as CreditSmart. This course helps prepare you for the responsibilities of homeownership and provides valuable financial...
Continue ReadingCan I refinance an existing mortgage with a Home Possible® Mortgage?
Yes, Home Possible® offers refinancing options that can help you take advantage of lower interest rates and better loan...
Continue ReadingWhat are the benefits of a Home Possible® Mortgage Loan?
Home Possible® offers numerous benefits, including low down payment options, flexible underwriting standards, competitive interest rates, and the ability to use various sources of funds for down payments. It also promotes financial literacy through...
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