What is the FHLMC Home Possible® Loan Program?
The FHLMC Home Possible® mortgages offer outstanding flexibility and options to meet a variety of borrowers’ needs. With Home Possible, you’ll capitalize on opportunities to meet the home financing needs of low and moderate-income borrowers looking for low down payment and flexible sources of funds.
FHLMC Home Possible® Basics
– Designed to help low- and moderate-income households obtain homeownership through affordable financing without having to make a large down payment
– 620 minimum qualifying credit score for all qualifying borrowers
– Max LTV up to 97%, TLTV up to 105%
– 15, 20, 25 and 30 year fully amortizing fixed rate terms available
– Available for purchase or no cash out refinance
What are the benefits?
Lower Credit Scores Accepted: A borrower with FICO scores of as low as 620 may be eligible for the FHLMC Home Possible® program.
Flexible Terms: The FHLMC Home Possible® is available in 15, 20, 25 or 30 year fixed rate terms. This provides some flexibility in the amount of time borrowers have to pay off their loans.
Fixed Rates: This program offers fixed rates, allowing each borrower’s principal and interest payments to stay the same, despite fluctuations in the mortgage market.
Low Down Payment, Low Reserves: With the FHLMC Home Possible® loan, borrowers can buy a home for as little as 3% down for 1-4 unit primary residences.
– 1-4 unit: 95% LTV/TLVT/HTLVT
– Manufactured homes: Refer to Freddie Mac Service Guide Chapter H33.
– No minimum borrower contribution on 1 unit, as low as 3% for 2-4 unit properties
Buying a Home with an FHLMC Home Possible® Loan
Borrowers can purchase a home with the FHLMC Home Possible® program by meeting the necessary eligibility requirements for the program. Financing through the FHLMC Home Possible® program allows borrowers who are in moderate to low income brackets to buy a home with up to 97% LTV.
For the Home Possible program, borrowers will need to first evaluate if they meet the income restrictions for their area. Income limits vary by location.
Once income qualification has been established, the borrower and lender can proceed as normal through the rest of the loan process.
FHLMC Home Possible® Refinancing
Borrowers can utilize a no cash out refinance option through the FHLMC Home Possible® program. Cash out refinancing is unavailable for this program.
The FHLMC Home Possible® Mortgage Loan Process
Here’s how our home loan process works:
– Complete our simple FHLMC Home Possible® Mortgage Qualifier
– Receive options based on your unique criteria and scenario
– Compare mortgage interest rates and terms
– Choose the mortgage loan offer that best fits your needs
– If purchasing a home, you can now start shopping with confidence with an Elite Realtor to find your perfect home