Both Freddie Mac's Home Possible Financing and Fannie Mae's Home Ready program have Income Restrictions unless, you purchase in an area they consider low to moderate income as directed. Both Program Requirements:

  • PRIMARY Residence purchase only
  • NOT Required to be a first time home buyer
  • On 2-4 units - can use rental income from other units to assist in qualifying for the property.
  • Purchase transactions only - no cash out & no rate and term refinances allowed
  • Income limits apply ONLY in certain locations. Locations considered to be under served markets are low income census tracts - and have no income restrictions.
  • 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; Home Possible Eligibility Loan Look Up
  • MI insurance required when greater than 80% LTV
  • First time Home Buyer must complete the Homebuyer Education Program
  • 2-4 Unit Purchase must complete Landlord Education Program

Fannie Mae's Look Up

Home Ready Eligibility Look Up

Freddie Mac's Look Up

Home Possible Eligibility Loan Look Up

Advantages of Freddie Mac's Home Possible - Low LTV's For Standard Conforming! (and reduced MI)

  • 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:

Conforming Loan Lookup

Required LTV - Purchase & Rate and Term Refinance For Fannie Mae's Home Ready Program - ( The main advantage to this program is reduced Mortgage Insurance versus traditional Conventional Financing.)

1 unit - 97% for Purchase, 95% - (high balance) / 95% LTV Refinance

2 unit - 85% LTV

3-4 unit - 75% LTV

Standard & High Balance Conforming Limits Apply


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