Home Possible® Purchase Loan
Best For: First Time Homebuyers, Low Down Payments
Low down payment financing from Freddie Mac with discounted fees for creditworthy low and moderate income borrowers across the US.
Program Description
The Home Possible® mortgage is designed to bring a competitively-priced loan option for first time homebuyers who have a strong credit profile and fall within the local income limits. Offering low down payments, flexible closing cost options, and reduced mortgage insurance coverage levels, Home Possible® is a great way to for well-qualified buyers to purchase a home while ensuring they reap the benefits of being a first time homebuyer.
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Home Possible® Purchase Loan
Min. Credit Score
620
Min. Down Payment
3%
Max Loan Amount
$726,200
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- Pricing better than or equal to standard loan pricing
- Non-occupying co-borrowers are allowed to help qualify
- Down payment can come from gifts, grants and Affordable Seconds®
- Credit scores as low as 620
- Lower down payment requirements for multi-family properties than HomeReady®
- Income limits disqualify many potential borrowers from qualifying
- Follows conventional loan limits, so borrowers are limited in how much they can borrow (varies by US County)
- Unlike HomeReady®, it requires that at least one borrower is a first time homebuyer
Program Availability
Home Possible® Purchase Loans are available in all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.
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“When you are purchasing your first home, make sure you find out if you qualify for Home Possible®! This program has some special features that may put it at the top of your option list."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
45.00%
Purchase Price Limit
No Limits
Income Limit
$16,160 - $119,600
Annual Qualifying Income
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- Lower mortgage insurance costs compared to FHA and Conventional
- As low as 3% down for purchase transactions
- Mortgage insurance is cancellable at 80% LTV
Additional Conditions
- Homeownership class required if all borrowers are first-time homebuyers
- Borrowers' combined income must be less than 80% of the area median income (AMI) where the property is located
- Must be an owner-occupied primary residence
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class may be required for this loan program.
Class Name: CreditSmart® Homebuyer U
Freddie Mac's Homeownership Education course is required when the Loan to Value ratio is greater than 95% and both borrowers are first-time homebuyers (at least one must complete the course).
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
Required with less than 20% Down Payment
Type: Private Mortgage Insurance (PMI)This program requires Private Mortgage Insurance (PMI) if you are putting down less than 20% on the home you are purchasing or refinancing.
Type: No Funding Fee
This program does not have a funding fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
FHFC Bond HFA Conventional Loan - Low Income
Best For: First Time Homebuyers, Low Down Payments, Lowest Rates, Easy Qualification
Florida Housing Conventional Loan for low income first time buyers with lower mortgage insurance that can be paired with assistance programs.
Conventional Purchase Loan
Best For: Flexible Terms, Lowest Rates, Savvy Investors
Meet the most popular mortgage program. Flexible financing offering a wide range of attractive benefits to qualified homebuyers across the US.
Related Resources
This is for Single-Income Homebuyers
The housing market is always changing, and today single-income homebuyers are quickly becoming one of the largest demographics to take part. While getting approved for a loan may take a bit more work for single applicants than those who are coupled or have dual incomes, it is certainly an attainable goal and often one that proves to be more affordable in the long run. Let's go over some of the things you'll want to prepare for as you begin your solo home buying journey.
Read More
Calculate Income Limits Using Area Median Income
Income limits are used to determine whether or not a home buyer is eligible for certain mortgage programs, including down payment assistance programs or incentives that can help make home buying more affordable. It identifies the maximum income level set by each housing authority for its program participants, and varies from county to county across the US. Often, the tool used to establish this maximum income level is often called Area Median Income, or AMI.
Read More
First Time Homebuyer Guide
Being a first-time homebuyer has its fair share of challenges. One of your biggest obstacles will be competing against other new or seasoned buyers. While bidding wars have tapered since the previous buying season, they can still occur.
Read More
A Rundown On Closing Costs and How They Affect You
It can be tricky to sift through all the figures , so we broke down what they are, how much they cost, who's responsible and how to minimize your expenses.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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