NOW OR NEVER WITH FREDDIE MAC'S HOME POSSIBLE - NO INCOME LIMIT RESTRICTED AREA'S! EFFECTIVE JULY 28TH - MUST HAVE APPROVED FINDINGS BY THAT DAY!
This is a great conventional product, competing with FHA's low down payment option, but unfortunately Freddie Mac will be doing away with the no income restricted area's very soon. This is an option I have recommended to clients, so felt the need to let the community know this option with Home Possible will be going away very soon.
Main Points For Freddie Mac's Home Possible -
- Reduced Mortgage Insurance
- Low Down Payments:
- LTV of 97% on 1 unit & 95% on 2-4 units within standard conforming limits.
- LTV of 95% 1 unit, 2 unit -85%, 3-4 units 80% for super conforming.
- Conforming loan limit look up:
- PRIMARY Residence purchase only
- NOT Required to be a first time home buyer, but limited to owning 2 properties, including subject.
- Locations considered a low income census tract - have no income restrictions (This is what they are doing away with July 28th)
- On 2-4 units - can use rental income from other units to assist in qualifying for the property.
- >90% financed - can receive up to 3% seller paid financing concessions
- Purchase transactions only - no cash out & no rate and term refinances allowed
- Income limits apply ONLY in certain locations. The borrowers qualifying income converted to annual income must not exceed 100% of the Area Median Income for the location of the subject property. This can be looked up on Freddie Mac’s website; Freddie Mac Home Possible Eligibility (You will now be restricted to 80% of the area median income! as of July 28th)
- MI insurance when greater than 80% LTV
- First time Home Buyer must complete the Homebuyer Education Program
- 2-4 Unit Purchase must complete Landlord Education Program