What is the Home Possible Loan Program and How You Can Take Advantage with a Purchase and Refinance Home Loan?
Freddie Mac Home Possible Mortgages offer outstanding flexibility and options to meet a variety of borrowers’ needs. Home Possible Advantage offers more flexibility for maximum financing. This offering adopts the responsible and affordable flexibilities of Home Possible, but with additional requirements.
First-time homebuyers, move-up borrowers, retirees and previous home buyers that had a foreclosure, bankruptcy or short sale
Families in underserved areas that offer no income limits
Very low and low- to moderate-income borrowers
- This the biggest benefit Lower interest rate and lower monthly mortgage coverage
Stable monthly payments with fixed-rate mortgages
Flexible sources of funds
Reduced mortgage insurance coverage levels for LTV ratios greater than 90 percent. In addition, monthly mortgage insurance will drop out of the payment unlike the FHA home loan program and you can also buy the mortgage insurance out
The minimum down payment of 3 percent allowed for Home Possible Advantage.
Eligibility annual income is up to 100 percent of area median income. There are higher income limits in high-cost areas and no income limit on properties located in any designated underserved area. Higher area median income limits mean broader borrower income eligibility so more borrowers qualify. This link here will define the income limit areas http://www.freddiemac.com/homepossible/eligibility.html
- FREE through Freddie Mac CreditSmart® – Steps to Homeownership Tutorial. Only five modules are required to obtain the Homebuyer Education Certificate for borrowers that are first-time homebuyers, does not apply on refinance loans or buyers who owned residential real estate in the past 36 months
- Various sources of homebuyer education are accepted
- Only required for one borrower when all borrowers are first-time homebuyers
Eligible Property Type
- 1 Unit Single Family Unit
- PUDs (Planned Unit Developments)
- 2 to 4 Units (for purchase transactions only)
I welcome the opportunity to explore this program with you if you are looking to refinance or purchase a home utilizing the Freddie Mac Home Possible and Home Possible Advantage Program. Please complete the short inquiry form below to start the home loan process.