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.
- 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.