Explore Home Possible® Loan
Home Possible® Loan
The Home Possible® Loan is another option for low to moderate-income borrowers seeking affordable homeownership. This program offers competitive interest rates, flexible down payment options, and a variety of property types.
Best for:
Individuals, Couples, Families
Property type:
1-4 Units
Down payment:
3%
Loan Term:
30 Years
Rate type:
Fixed Rate
Loan Limits:
Conforming
Key Benefits
Affordable Housing
Designed to help low to moderate-income borrowers achieve homeownership.
Designed to help low to moderate-income borrowers achieve homeownership.
Flexible Down Payment
Benefit from flexible down payment options, including low down payment choices.
Benefit from flexible down payment options, including low down payment choices.
Competitive Rates
Enjoy competitive interest rates for eligible borrowers.
Enjoy competitive interest rates for eligible borrowers.
Property Types
Apply the loan to a variety of property types, including single-family homes and condos.
Apply the loan to a variety of property types, including single-family homes and condos.
Income Limits
Check eligibility based on your location and income level.
Check eligibility based on your location and income level.
Commonly asked questions about Home Possible® Loan
What is a Home Possible Loan?
A Home Possible Loan is a mortgage program designed to provide affordable financing options for low-to-moderate-income borrowers, particularly in underserved areas.
Who is eligible for a Home Possible? Loan?
Home Possible Loans are available to both first-time and repeat homebuyers who meet specific income and property location requirements.
What are the down payment options for a Home Possible Loan?
Down payment options can be as low as 3%, making it an accessible choice for borrowers with limited funds.
Can I use rental income to qualify for a Home Possible? Loan?
Yes, you may be able to use rental income from an accessory dwelling unit to help qualify for a Home Possible Loan.
Are there income limits for Home Possible Loans?
Yes, income limits vary based on the location of the property and the borrower's household size.
What credit score is needed to qualify for a Home Possible Loan?
Credit score requirements vary, but a higher score can improve your chances of qualifying and obtaining favorable terms.
Can I use a Home Possible Loan for investment properties?
No, Home Possible Loans are intended for primary residences only.
Can I refinance my existing mortgage into a Home Possible Loan?
Yes, refinancing into a Home Possible Loan may be an option if you meet the program guidelines and eligibility criteria.
How do I compare Home Possible Loan offers from different lenders?
Collect loan estimates and consider factors like interest rates, fees, and overall terms to determine the best option for your financial situation.
Is the Home Possible program backed by the government?
Yes, the Home Possible program is backed by Freddie Mac, a government-sponsored enterprise.
What is the role of homeownership education in Home Possible Loans?
Completing homeownership education may be required for some borrowers and can provide valuable insights for first-time buyers.
What is the maximum loan-to-value (LTV) ratio for a Home Possible Loan?
The maximum LTV ratio varies depending on factors like the borrower's credit score and the property type.
Can I finance the upfront mortgage insurance premium (MIP) with a Home Possible Loan?
Yes, you may be able to finance the upfront MIP as part of your Home Possible Loan.
What types of properties are eligible for a Home Possible Loan?
Eligible properties include single-family homes, condominiums, and planned unit developments (PUDs).
Can I use gift funds for the down payment on a Home Possible Loan?
Yes, you may be able to use gift funds for the down payment, subject to certain restrictions.