What You Need To Know On Home Possible Financing - Low Down

[Jerry Padilla]

Home Possible Financing - Income limits apply ONLY in certain locations. Locations considered to be underserved markets are low income census tracts - and have no income restrictions.

YOU ARE NOW LIMITED TO OWNING 2 PROPERTIES AND SUBJECT ONLY FOR THIS LOAN!

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:

Conforming Loan Lookup

• PRIMARY Residence purchase only
• NOT Required to be a first time home buyer
• Locations considered a low income census tract - have no income restrictions
• 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
• 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