FHA mortgages have been the only option for first-time buyers without a great deal of money to put down on a home or for buyers with low to moderate incomes. MortgageDepot now has a flexible financing option to accommodate the needs of buyers who might have felt trapped into accepting FHA financing. The Home Possible Mortgage Program from Freddie Mac offers flexible and affordable financing opportunities surpassing what has previously been available.

Flexibility to accommodate more borrowers

Our mortgage professionals reviewed the features of the Home Possible Mortgage Program and believe it benefits more borrowers than FHA and other government-backed lending programs. Some of the key features of the program include the following:

  • Low down payment options without a borrower contribution
  • Inclusion of rental income to qualify for loans on multi-unit properties
  • Lower interest rates for low-income borrowers
  • Reduced interest rates on properties in undeserved areas
  • No up-front mortgage insurance premium
  • Lower private mortgage insurance costs than with FHA mortgages
  • Borrowers are not required to maintain reserves

Down payment requirements under the Home Possible Mortgage Program can be as low as 3 percent of the purchase price of the home, but borrowers are not required to contribute to it. Our borrowers can use funds from other sources to meet the low down payment required under the Home Possible Mortgage Program, including:

  • Personal gifts
  • Down payment assistance grants
  • Employer or union down payment assistance programs
  • Closing cost assistance programs
  • State and local housing agency subordinated second mortgage programs

MortgageDepot works with lenders offering the Home Possible Mortgage Program

Our mortgage brokers work with lenders approved by Freddie Mac to offer loans under the Home Possible Mortgage Program. We help our borrowers through the application and mortgage qualification process. Among the qualification requirements under the program are the following:

  • Minimum credit score of 660 for borrowers purchasing single-family homes with fixed-rate mortgages
  • Debt-to-income ratios
  • Income limits determined by the location of the home being purchased
  • Education classes for first-time home buyers

Borrowers can rely upon our team of mortgage brokers to be with them at every stage of the process to answer questions and guide them from the application through completion of the transaction.

How does a Home Possible Mortgage compare to FHA financing?

The Home Possible Mortgage Program is available to purchasers of single-family dwellings, condominiums, multi-family properties with up to four units and manufactured homes. This offers greater flexibility than is available with FHA mortgages. Other advantages of the Home Possible Mortgage Program include the following:

  • Mortgage insurance: FHA mortgage insurance must be carried for the life of the loan, but mortgage insurance can be cancelled once the borrower’s equity in the property reaches 20 percent under the Home Possible Mortgage Program.
  • Appraisal process: FHA loans involve a lengthy appraisal process that might call for repairs to the property in order for it to qualify for mortgaging. Home Possible Mortgage Program appraisals take less time to complete and do not include a list of required repairs.
  • Married couples with only one borrower: The FHA qualification process in community property states takes a non-borrower spouse’s credit and debts into consideration in determining eligibility for a loan, but the Home Possible Mortgage Program does not.

Work with the leader in home financing

MortgageDepot has the experts in Home Possible Mortgage Program financing who are ready to assist home buyers and homeowners with new loans or refinancing.

Have questions or need help?

Call us now at 800-220-LOAN

Request a call back or email us your questions!

Get Started

No obligation quote