Advantages and Restrictions of Home Possible

Advantages of Home Possible

• LTV of 97% on 1 unit & 95% on 2-4 units
• Minimum credit score of 620
• PRIMARY Residence purchase only
• NOT Required to be a first time home buyer
• Locations considered a low income census tract - have no income restrictions

Restrictions of Home Possible

• 3-4 unit properties require a 720 credit score with less 20% down. 
• 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; http://www.freddiemac.com/homepossible/eligibility.html
• May NOT own other residential property
• MI insurance when greater than 80% LTV
• Max loan amount - conforming limits (super conforming not allowed)
• Non- occupying co-borrowers are not allowed with this program