Freddie Mac Home Possible®

Posted by Laine Smith on 12/20/13 8:17 AM

Topics: Home Buying

Happy couple with a kid in their new home

Freddie Mac’s goal of making homeownership affordable to a wider range of borrowers is achieved through Freddie Mac Home Possible® Mortgages. Because Home Possible® offers flexibility and options, like low down payments, this loan is a good option for first-time buyers, low to moderate income families, move-up borrowers and retirees all alike.

Benefits

 

  • 5 percent down payment of which all can be gifted for 1-unit properties, with no borrower contribution required
  • Reduced mortgage insurance
  • Down payment assistance programs allowed in conjunction to reduce closing costs
  • Stable monthly mortgage payments
  • No reserves required for 1-unit properties
  • Purchase and no cash-out refinancing

 

Requirements and Eligibility

 

  • Homebuyer education required if borrowers are first-time homebuyers
  • 2-4 unit properties, borrowers must contribute 3 percent of the 5 percent down payment of their own funds (cannot be all gifted)
  • Two months reserves required for 2-4 unit purchases, which cannot be gifted
  • Borrower may not have income more than 100% of the HUD area income

 

If you are interested in a purchase or refinance, contact one of our expert mortgage bankers at Compass Mortgage to see if you qualify for Home Possible® today!

 

Looking for more information on buying a home? Our Mortgage 101 Handbook is the ultimate guide for First Time Home Buyers.

 

Download: Mortgage 101 Handbook

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