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Who Does the Freddie Mac Home Possible Loan Program in California

July 30th, 2018 1:10 PM by Nathan Rufty

What is Freddie Mac Home Possible® 

For the longest time most California home buyers who are looking to purchase a home had to save up to 20% down payment to be able to purchase a home in California, or they have to be qualified for special home loans programs like VA loans which are meant for veterans only, and FHA loan program which also has its own qualifying terms. But now more than ever there are more options for home buyers in California. Freddie Mac is now offering a new program called Home Possible®, Freddie Mac Home Possible® in California mortgages offers a low down payment for low-moderate income home buyers or home buyers in high-cost or underserved communities in California.

There is also a couple of advantages for the Home Possible program over FHA loans; Conventional mortgage insurance will automatically end with Home Possible Advantage when the LTV drops below 80%; FHA mortgage insurance will stay for the life of the loan, also there is no upfront PMI required for Home Possible Advantage loans.

What does Freddie Mac Home Possible® in California means to you?

This program made it possible for home buyers to put down as little as 3% of the home’s selling price Freddie Mac Home Possible Advantage mortgage loan program. This is huge because now you don’t have to wait until you save tons of money to purchase a home, and you don’t have to be a veteran or be able to qualify for an FHA loan to purchase your dream home in California with a low down payment.

Freddie Mac Home Possible® in California Types

With Freddie Mac Home Possible® you have to two options available for you depending on your needs and preferences. Home Possible (95% LTV) & Home Possible Advantage (97% LTV). LTV stands for Loan to Value, which means if you the LTV is 95% then the borrowers will need to come up with 5% as a down payment, and if the LTV is 97% which is offered under the Home Possible Advantage options then you will only need to come up with 3% down payment.

Both the Home Possible and Home Possible Advantage programs are ideal for 1st home buyers in California. What’s more, neither program restricts move-up home buyers. However, to use either program you cannot have an ownership interest in any other residential property. So if you are a move up home buyer, you must sell your current home first before taking on the Freddie Mac Home Possible® but the good news is that you can close on both loans at the same time.

Freddie Mac Home Possible® 95% LTV

Key Features

  • Maximum loan-to-value (LTV) is 97% and maximum total loan-tovalue (TLTV) is 105%.
  • Eligible properties: one-unit properties, condominiums and planned unit developments. (Manufactured homes are ineligible.)
  • Fixed-rate mortgages with a term of up to 30 years.
  • All borrowers must occupy the property as their primary residence.


  • Annual income up to 100% of area median income in low-income census tracts.
  • No reserves required.
  • More eligible sources of funds for down payment and closing costs.
  • May be submitted through Loan Prospector or manually underwritten.
  • Rental income allowed (with certain restrictions).
  • Temporary subsidy buydown plans allowed to lower initial payments.
Home Buyer Benefits

  • No minimum borrower contribution from borrower personal funds.
  • Gifts from related persons and other sources of funds permitted for down payment and closing costs.
  • No minimum LTV limit.
  • No reserves required, lowering cash needed to close.
  • Flexible homebuyer education requirement.

Freddie Mac Home Possible® 97% LTV

Key Features

  • Purchase and no cash out refinancing.
  • Maximum 97 percent LTV and 105 percent TLTV ratios for Home Possible Advantage.
  • Mortgage insurance options.
  • Loan Product Advisor® or manual underwriting.
  • No reserves required for 1-unit properties for manually underwritten mortgages.
  • Maximum credit fee in price of 1.5 percent.


  • First-time homebuyers, move-up borrowers, and retirees.
  • Families in low-income census tracts.
  • Very low, low and moderate income borrowers.

Home Buyer Benefits

  • Stable monthly payments with fixed-rate mortgages.
  • Flexible sources of funds for down payment.
  • Reduced mortgage insurance coverage levels for LTV ratios greater than 90 percent.
  • Minimum down payment of 3 percent allowed for Home Possible Advantage®.
Freddie Mac Home Possible in California

Who Does the Freddie Mac Home Possible® Loan Program in California

Most of mortgage companies in California are used to the traditional, and conventional mortgage programs like FHA and VA loans, but you to make sure that you get connected with a professional loan officer that knows the Freddie Mac Home Possible® inside out and can guide you through the whole process from A-Z without missing any of the benefit that you can capitalize on with this awesome program. Contact Nathan Rufty Today at (909) 503-5600 for a Free Freddie Mac Home Possible® in California consultations. 

What do I need to apply for a Freddie Mac Home Possible®  in California

Your trusted Freddie Mac Home Possible® Loan Program expert Nathan Rufty will guide you through the whole process, but here are a list of the items need to get started this way we can process your application faster:

  • State issued ID
  • Pay stubs for the most recent 30 days
  • W-2 for the past two years
  • 2 Years of Tax returns
  • Recent Bank Statements (3 Months)
  • If self employed you will need Profit and Loss Statement 
  • Documentation for any additional income you have



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