For many prospective homeowners, the biggest hurdle to buying a home is the down payment. The Freddie Mac Home Possible® mortgage is designed to help very low- to low-income borrowers achieve the dream of homeownership with flexible financing options and competitive pricing.

Key Benefits of the Home Possible Loan

  1. Low Down Payment Requirements
    With a down payment as low as 3%, Home Possible makes homeownership more accessible. Borrowers can use a variety of funding sources, including family contributions, employer-assistance programs, secondary financing, and even sweat equity.
  2. Expanded Borrower Flexibility
    • Non-occupying co-borrowers can be included for a borrower purchasing a one-unit residence.
    • Borrowers can own another financed property while still qualifying for Home Possible.
    • The program applies to various property types, including single-family homes, condos, co-ops, and planned-unit developments. Manufactured homes may also be eligible with certain restrictions.
  3. Income Limits and Qualification
    • Borrower income must be at or below 80% of the Area Median Income (AMI), making this program ideal for individuals and families who may struggle to qualify for traditional loans.
    • There are no geographic loan limits.
    • Freddie Mac provides a Home Possible Income & Property Eligibility Tool to determine if a borrower qualifies.
  4. Competitive Loan-to-Value (LTV) Ratios
    • Maximum LTV: 97%
    • Total Loan-to-Value (TLTV) with Affordable Seconds®: 105%
    • Home Equity Line of Credit (HTLTV) for 1-unit properties: 97%
  5. Mortgage Insurance Advantages
    • Mortgage insurance (MI) is required but can be canceled once the loan balance reaches 80% of the home’s appraised value.
    • MI coverage requirements are reduced for borrowers with LTV ratios above 90%, leading to potential savings over time.
  6. Affordable Pricing & Credit Fee Caps
    • Certain credit fees are capped for eligible mortgages, ensuring more cost-effective home financing.
    • More details can be found in Freddie Mac’s Exhibit 19 and Exhibit 19A on credit fees.
  7. Empowering Borrowers Through Education
    To support responsible homeownership, borrowers are required to complete a homeownership education course. Freddie Mac offers CreditSmart®, a free online tutorial designed to equip borrowers with essential financial knowledge.

Why Choose the Home Possible Loan?

Home Possible offers a clear path to homeownership for borrowers who might not qualify for conventional loans due to income constraints or down payment limitations. By making home loans more accessible, this program supports financial growth, family stability, and stronger communities.

If you’re considering homeownership and want to explore the benefits of the Home Possible loan, North Star Mortgage Network is here to guide you through the process. Contact us today to learn more and see if you qualify!

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