Posted 4 months ago

Freddie Mac's Home Possible Financing

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.

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

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