Freddie Mac Home Possible

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What is Freddie Mac Home Possible?

The Freddie Mac Home Possible program is a mortgage initiative aimed at making homeownership more accessible to low- and moderate-income homebuyers. Freddie Mac is a government-sponsored enterprise (GSE) that buys and sells mortgages to promote a stable and affordable housing market. The Home Possible program specifically targets first-time homebuyers, as well as those with limited resources for down payments. It provides an avenue for people to secure mortgage loans with as low as 3% down payment, flexible sources of funds, and reduced mortgage insurance costs.

Eligibility Criteria

  1. Income Limits: Generally, your income should not exceed 100% of the area median income (AMI), although this may vary based on location.
  2. Property Types: Single-family homes, condominiums, and planned unit developments are usually eligible.
  3. Occupancy: The property should be a primary residence. Secondary homes or investment properties are typically not eligible.
  4. Credit Score: A minimum credit score may be required, typically around 620 or higher depending on the lender.
  5. Homeownership Education: Many Home Possible mortgages require borrowers to complete a homeownership education course.

Advantages of Home Possible Mortgages

  1. Lower Down Payment: Down payments as low as 3% are possible.
  2. Flexible Fund Sources: Contributions can come from family, employer-assistance programs, secondary financing, and even from sweat equity in some cases.
  3. Reduced Mortgage Insurance: Lower mortgage insurance costs compared to traditional loans.
  4. Rate Flexibility: Fixed and adjustable-rate mortgages are available.
  5. Refinancing Options: The Home Possible program also offers options for refinancing an existing mortgage.

Disadvantages of Home Possible Mortgages

  1. Income Restrictions: Limits on income may disqualify borrowers who earn more than the AMI.
  2. Property Restrictions: Not all property types are eligible.
  3. Initial and Ongoing Eligibility: Borrowers have to meet certain criteria both at the time of securing the loan and throughout the loan period, like maintaining the property as a primary residence.

How to Apply for a Home Possible Mortgage

  1. Research Lenders: Not all mortgage lenders offer Home Possible loans. Make sure to shop around.
  2. Gather Documentation: Prepare documents like tax returns, W-2s, pay stubs, and bank statements.
  3. Pre-Approval: Get pre-approved for the loan to understand how much you can borrow.
  4. Complete Homeownership Education: If required, complete a homeownership education course from a Freddie Mac-approved provider.
  5. Finalize the Loan: Once you’ve found your property, finalize your mortgage application and proceed to closing.
The Freddie Mac Home Possible program is designed to make homeownership more attainable for people with low to moderate income or limited down payment resources. With features like a low down payment, flexible funding sources, and reduced mortgage insurance, it’s a viable option for eligible homebuyers. Always consult a mortgage advisor or financial planner to understand if a Home Possible mortgage suits your specific financial needs.


Freddie Mac Home Possible is a mortgage program designed to help low- to moderate-income homebuyers afford homeownership. It offers low down payments, flexible sources of funds for down payment and closing costs, and reduced mortgage insurance requirements.

To qualify, borrowers generally need to have a low or moderate income for their area, a decent credit score, and a stable employment history. Specific income limits vary depending on the location of the property and the number of people in the household.

Home Possible mortgages allow for a down payment as low as 3%.

Yes, the Home Possible program allows borrowers to use gift funds, grants, and Community Seconds® for the down payment and closing costs.

Most types of residential properties are eligible, including single-family homes, condominiums, townhouses, and 1-4 unit properties. There are also options for manufactured housing.

Yes, mortgage insurance is required for Home Possible loans with down payments less than 20%, but it may be removed once you build enough equity in your home.

Freddie Mac Home Possible offers 15- to 30-year fixed-rate mortgages.

The maximum loan amount varies depending on the location of the property and the number of units, but it generally conforms to Freddie Mac’s standard loan limits.

Yes, borrowers who are first-time homebuyers must complete a homeowner education course before closing.

You can apply for a Home Possible mortgage through a participating lender. It’s a good idea to shop around and compare rates and terms from multiple lenders before choosing one.

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