Freddie Mac Home Possible®

Making Home Ownership Accessible to low-to-moderate Income Borrowers!

Introduction The Freddie Mac Home Possible® mortgage is tailored to assist low-to-moderate income borrowers in achieving homeownership. It offers flexible funding options, including low down payments and cost-effective mortgage insurance options.

Program Features

  • Low Down Payments: As little as 3% down is required, making it easier for first-time homebuyers and repeat buyers to enter the housing market.
  • Flexible Funding Sources: Down payments can come from personal savings, gifts, grants, or even sweat equity.
  • Cancellable Mortgage Insurance: Unlike other low-down-payment loans, borrowers can cancel their mortgage insurance once they achieve 20% equity in their home.

Eligibility Criteria

  • Income Limits: Applicants must have incomes at or below 80% of the area median income, though this may vary by location.
  • Property Types: Eligible properties include single-family homes, condominiums, and planned unit developments. The property must be the borrower’s primary residence.
  • Credit Requirements: Home Possible® is accessible to those with limited credit history, but certain minimum credit scores apply.

Application Process

  1. Lender Consultation: Prospective borrowers should start by consulting with a Freddie Mac-approved lender to discuss their eligibility.
  2. Financial Documentation: Borrowers need to prepare and submit necessary documents such as proof of income, employment verification, and credit history.
  3. Loan Application: Complete the mortgage application with the chosen lender, who will guide through the underwriting process.

Educational Component Borrowers are required to complete the CreditSmart® educational course to qualify for a Home Possible® mortgage. This program helps borrowers understand the rights and responsibilities of homeownership.


  • Flexible Qualification Criteria: Makes it easier for individuals with lower income or imperfect credit to qualify for a mortgage.
  • Reduced Mortgage Insurance Costs: Lower than typical rates, which decreases monthly payments.
  • No Cash Reserves Required: For one-unit properties, which simplifies the qualification process for many borrowers.

Conclusion The Home Possible® mortgage by Freddie Mac offers an accessible pathway to homeownership, underscored by its flexible eligibility criteria and practical benefits tailored to the financial realities of low-to-moderate income individuals.

This comprehensive guide should help potential borrowers understand the value and specifics of the Freddie Mac Home Possible® mortgage, equipping them with the information needed to start the application process. For more in-depth details, please refer to the official Freddie Mac Home Possible® page.

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