Home Possible® by Freddie Mac

This loan program is designed for borrowers that have low to moderate income. Borrowers can qualify for a conforming conventional mortgage with a down payment as low as 3% of the property purchase price and no ($0) minimum borrower financial contribution. This program can also be used for a “no cash out” refinance of an existing mortgage. The benefits for Home Possible® are:

  • The down payment can be as low as 3% with no minimum borrower contribution.
  • There are multiple flexible sources of income allowed, including rental income from boarders and other units in multi-unit properties.
  • A potentially reduced interest rate for borrowers with low income sources (or borrowers living in underserved areas).
  • No FHA mortgage insurance premium paid upfront.
  • Potentially lower private mortgage insurance (PMI) cost as compared to the ongoing FHA mortgage insurance premium MIP cost.
  • No need to maintain reserves if you are buying a single-family property.

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