Freddie Mac Home Possible Loan Change

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Freddie Mac Home Possible Loan Change

Geoffrey Gabala
Vancouver, WA · Member since 2020 · 12 posts · 5 votes

Hello,

Has anyone heard about changes to the Freddie Mac Home Possible Loan for multifamily (2-4 units)?

We just got into contract to find out that the 5% down will only be honored with a closing date of 2/15/2021. Anything closing using a HP loan beginning today requires 15% for mf.

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Eric Veronica
Lender · Cleveland, OH · Member since 2011 · 588 posts · 439 votes
5y

@Andrew Postell

It was addressed on Freddie's bulletin 2020-45 released on 12/2/2020.  Below are the snippets from the bulletin pertaining to the Homepossible change.  :-(

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  • Elise Marquette
    Lender · Frisco, TX · Member since 2019 · 546 posts · 270 votes
    5y

    Yup, Fannie/Freddie are tightening up those guidelines

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  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    5y

    @Geoffrey Gabala this would be a very big change.  I have not heard of anything of this sort nor does Freddie list it as any of their current bulletins nor ones coming up. Are you saying you are purchasing a property?  Or selling one?

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  • Geoffrey Gabala
    OP
    Vancouver, WA · Member since 2020 · 12 posts · 5 votes
    5y

    @Andrew Postell

    We were in the process of buying a house. We couldn't find it on the Freddie Mac site either. Only found out about it after our lender pulled our credit and then informed us that it was now a 15% down instead of the 5%.

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  • Eric Veronica
    Lender · Cleveland, OH · Member since 2011 · 588 posts · 439 votes
    5y

    @Andrew Postell

    It was addressed on Freddie's bulletin 2020-45 released on 12/2/2020.  Below are the snippets from the bulletin pertaining to the Homepossible change.  :-(

    1Reply
  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    5y

    @Eric Veronica thanks for pointing that out.  If I'm reading this correctly....it doesn't go into effect until April 1st.  Is that how you read it?

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  • Eric Veronica
    Lender · Cleveland, OH · Member since 2011 · 588 posts · 439 votes
    5y

    @Andrew Postell yessir

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  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    5y

    @Geoffrey Gabala I think you have an answer.  Try seeking a different lender right away.

    1Reply
  • Stephanie MedellinBusiness Member
    Mortgage Broker · CA · Member since 2014 · 1k+ posts · 644 votes
    5y

    @Geoffrey Gabala Unfortunately yes, this is accurate. Hopefully an FHA loan will work for your purchase with 3.5% down. That's probably your best option.

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  • Geoffrey Gabala
    OP
    Vancouver, WA · Member since 2020 · 12 posts · 5 votes
    5y

    @Eric Veronica Thank you for posting the source. Still not sure how to properly navigate their websites.

    1Reply
  • Geoffrey Gabala
    OP
    Vancouver, WA · Member since 2020 · 12 posts · 5 votes
    5y

    @Stephanie Medellin Yeah it seems like we're going that way with FHA.

    We've put in a few offers with FHA and it seems sellers are being scared off by it. Sounds like seller agents are convincing them that FHA has very strict guidelines during appraisal and that sales fall through.

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