FREDDIE MAC HOMEPOSSIBLE®
What is the Home Possible loan program?
Some mortgage loan programs require you to put anywhere from 10 to 20% down on a home, have a preferred credit score, and meet strict income requirements.
These are among the reasons why many first-time home buyers — and even homeowners looking to refinance — don’t think they can qualify for mortgage financing.
Fortunately, there are a few different programs intended to help these borrowers. Whether you need a small down payment, looser credit requirements, or income flexibility, there are options to help.
One such program is called Home Possible, and it’s backed by government-sponsored enterprise Freddie Mac.
To qualify for a Home Possible mortgage loan, you have to meet eligibility requirements set by Freddie Mac and your lender. Briefly, you’ll need:
A 620 or higher credit score
A 3% down payment
Gift funds eligible for down payment requirements
A DTI below 43%, below 45% for manually underwritten files
Stable income and steady employment
Household income no higher than 80% of your area’s median
You’ll live in the home as a primary residence