If you’re in the market for a new home and you’re shopping for mortgage options, you may have heard of Home Possible. This is a new program being offered through Freddie Mac, with the intention of making home purchases more attainable for first time and repeat home buyers who have a low income.
Home Possible loans are conforming loans funded by Freddie Mac, which is a government-sponsored entity under the Federal Housing Finance Agency (FHFA).
These loans were developed with the intention of making it easier for those with low incomes to qualify and finance a home purchase through a mortgage.
Home Possible loans are ideal for home buyers who have a low income but are able to afford a minimal down payment and can handle a monthly mortgage payment.
There are a couple of key groups that these Home Possible loans are specifically intended for:
You don’t have to be a first time home buyer to qualify for a Home Possible loan, but this mortgage option is an especially good one for those who are making their first home purchase.
One of Freddie Mac’s main objectives is to make home purchases more attainable for those who need assistance when it comes to home affordability. In line with this objective, Home Possible loans are specifically geared towards low-wage earners who are looking for an affordable mortgage option to finance their home purchase.
While the above groups are the ideal candidates for Home Possible loans, the specific qualification requirements include:
You can determine whether or not you are eligible for a Home Possible loan here. Need assistance? Give us a call at 518-782-1202 or contact us online and we’d be happy to help you understand the eligibility requirements specific to your unique scenario.
In order to qualify for the Home Possible program, your credit score must be 660 or higher. (Buyers with a FICO score as low as 580 may qualify with a pricing adjustment on the loan.)
The income limit for the Home Possible program varies based on your geographic location. In most areas, a buyer’s income can not exceed 80% of the median income in the area where they are planning to purchase a home.
In some specific underserved areas, there is no income limit.
Additionally, as mentioned previously, a buyer’s debt to income ratio should be 43% or less in order to qualify for the Home Possible program.
Home Possible program from Freddie Mac offers a number of key advantages for low income home buyers, including:
If you’re a buyer with limited income looking to purchase a home, the Home Possible program could be a great opportunity for you!
Want to find out if you qualify? Interested in exploring Home Possible as a financing option? Our team of mortgage professionals can guide you through the mortgage process from start to finish and help you find the home loan that’s right for you, whether it’s a Home Possible loan or another type of loan.
Give us a call today at 518-782-1202 or get started with the mortgage application process today right here!