Freddie Mac Home Possible Mortgage
A Freddie Mac Home Possible Mortgage from NASB helps low-income borrowers get financing and allows for the down payment to come from outside sources.
Home ownership made simple with a Home Possible loan from NASB.
If your dream is owning a home but your income level may be holding you back, a Home Possible mortgage through Freddie Mac may be the solution. The Home Possible mortgage for low income borrowers offers down payments as low as 3%, plus co-borrowers do not need to live in the residence. Your down payment can come from a variety of sources including family, employer-assistance programs, secondary financing, and sweat equity. Call NASB today to see if you qualify.
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Home Possible Loan Advantages
- Competitive rates and terms
- Down payments as low as 3%
- Allows for flexible source of down payment and closing costs (family, employee assistance programs, sweat equity); no minimum personal funds required
- Boarder income and rental income from an accessory unit allowable
- Reduced mortgage insurance pricing for loans above 90% LTV
Home Possible Loan Requirements
- For purchase or rate and term refinance (no cash-out refinance)
- Borrower income is less than or equal to 80% of the area median income
- Primary residences only; non-occupant co-borrowers allowed
- Max LTV 97% for purchases or limited refinances owned or securitized by Freddie Mac
- Minimum FICO 660 for fixed rate purchases; 680 for ARM purchases
- Home ownership counseling course required for any purchase transactions with first-time home buyers
Minimum loan amount of $175,000 required to apply*
Freddie Mac Home Possible Loan FAQs
What is a Home Possible loan?
Home Possible is a mortgage loan program offered through Freddie Mac that allows borrowers with lower incomes to achieve their home ownership or refinance goals. They feature low down payments, fixed-rate mortgages and reduced mortgage insurance levels.
Do I have to be a first-time home buyer to qualify for a Home Possible loan?
No. As long as your income does not exceed 80% of area median income (AMI) you qualify for a Home Possible loan.
How do I qualify for a Home Possible mortgage?
To qualify for a Home Possible mortgage:
- Borrower income is less than or equal to 80% of the area median income
- Primary residences only; non-occupant co-borrowers allowed
- Max LTV 97% for purchases or limited cash-out refinances owned or securitized by Freddie Mac
- Minimum FICO 660 for fixed rate purchases; 680 for ARM purchases
- Home ownership counseling course required for any purchase transactions with first-time home buyers
Do I need mortgage insurance with a Home Possible loan?
Mortgage insurance is required with a Home Possible loan. Coverage requirements are reduced for LTV ratios above 90%; can be cancelled if the loan-to-value (LTV) ratio falls below 80%.
What are the income limits for a Home Possible loan?
You must not earn more than 80% of your census tract’s median income to be eligible for a Home Possible loan. Check your area’s median income here.
Does a Home Possible loan require homebuyer education?
If you are a first-time home buyer, all occupying Home Possible borrowers must complete a homeownership education course offered by a qualified provider.
Can I refinance with a Home Possible loan?
Yes, you can use a Home Possible loan to do a rate-and-term refinance (cash-out refinances are not available). And, if you qualify, you can refinance out of a Home Possible loan into a different loan program.
What residence types are eligible for Home Possible mortgages?
Residencies eligible for a Home Possible mortgage includes houses with 1-4 dwelling units, condos, planned unit developments, and some types of manufactured homes.
What is the minimum required loan amount?
A minimum loan amount of $175,000 is required to apply. Exceptions include mortgage products for properties located within the Greater Kansas City metro and surrounding areas. Contact a NASB Loan Officer for details on the excluded areas and/or zip codes.
