Home Possible® Mortgage Programs

 

What are Freddie Mac's Home Possible Mortgages?

Home Possible and Home Possible Advantage are two conventional loan programs created by Freddie Mac. They are affordable given their smaller 3% to 5% down payment requirement. The one that’s right for you will depend upon your income, the type property you wish to finance, and property location.

Home Possible mortgages are designed for low to moderate-income homebuyers and are well-suited for first-time home buyers and younger borrowers. These programs can help you go from renting to buying.

 

Program Details

Both the Home Possible and Home Possible Advantage programs help first-time home buyers. What’s more, neither program restricts “move-up” buyers. However, to use either program you cannot have an ownership interest in any other residential property. For example, if you are a move-up buyer, you must sell your current home before taking on a Home Possible loan. Here’s some good news: you can close both the home you’re selling and the home you’re buying on the same day.

Because the Home Possible loan programs are designed for low to moderate-income borrowers, income limits apply. To be eligible for either mortgage program, your income cannot exceed the Area Median Income (AMI) where the property is located.

Freddie Mac guidelines also require stable monthly income for all borrowers who sign the mortgage note (not merely household income). Stable means a 2-year income history that is reasonably expected to continue.

 

Terms Available

  • Fixed Rate Mortgages
  • 5/1 ARM (excluding manufactured homes)
  • 7/1 AM
  • 10/1 ARM

How To Apply For Home Possible Mortgages

Applying for a loan is straightforward. You’ll need to gather a few documents before you start. Most of them will be available in a digital format, as PDF files, that you can send to your loan advisor (or upload to the online application form they provide). Here’s what you’ll need to get the ball rolling:

  • State issued ID, such as driver’s license or passport
  • Paycheck stubs for the most recent 30 days
  • W-2 forms from the past two years
  • Bank Accounts – recent statements from all accounts, all pages, even if blank
  • Tax returns – for the past two years
  • P&L Statement – year-to-date profit & loss statement if self-employed
  • Supplemental income – statement from retirement accounts, alimony, etc.
 

What's the difference between Home Possible and Home Possible Advantage?

While very similar, each program is slightly different. The table below shows how they vary.
 
  Home Possible Home Possible Advantage
Fixed Rate Mortgage 30, 20, 15, 10-year FRM 30, 20, 15, 10-year FRM
Adjustable Rate Mortgage 5/1, 7/1 or 10/1 ARM Not permitted
LTV/TLTV/HTLVT 95 97/105
Loan Purpose Purchase only Purchase only
Occupancy Primary residence Primary residence
Property Type 1-4 Unit, PUD or Condo 1-unit, PUD or Condo
 
 

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Licensing Info:

NMLS # 317299

RMLO # 222329

 "CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A COMPANY OR A RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550.
 THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV."
 

 

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