Home Possible®

 Home Possible® by Freddie Mac supports low- to moderate-income buyers with as little as 3% down. Available to first-time and repeat buyers, it offers flexible credit and affordable options to help more families own a home. 

Here are the key features, benefits, and requirements: 

 Allows for a down payment as low as 3% of the home’s purchase price. This can come from personal savings, gift funds, grants, or secondary financing (such as a loan or a grant from a nonprofit organization, state or local government, or employer).

 Lower mortgage insurance coverage requirements and the ability to cancel MI once the loan balance drops below 80% of the home’s value.

Borrowers are required to complete an online homeownership education course. This course aims to provide valuable information and guidance throughout the home-buying process, helping borrowers make informed decisions.

Available to both first-time and repeat homebuyers, although it is often used by first-time buyers due to its low down payment option.

 Home Possible can be used for no-cash-out refinancing as well as purchases.

 Borrower income must not exceed 80% of the area median income (AMI).

 The property must be owner-occupied as a primary residence; investment and vacation homes are not eligible.

Generally requires a credit score of at least 620. However, specific lenders may have their own credit score requirements.

 While Freddie Mac does not specify a maximum, most lenders prefer a DTI of 50% or less.

 Required if all borrowers are first-time homebuyers, ensuring buyers are prepared for homeownership. This course covers topics such as budgeting, mortgage financing, and home maintenance.

 The property must be owner-occupied as a primary residence; investment and vacation homes are not eligible.

 1-4 unit homes, condos, co-ops, planned unit developments, and manufactured homes (with restrictions).