A Home Possible® mortgage offers more options and credit flexibility than ever before to help very low-to low-income borrowers attain the dream of owning a home. To begin, Homebuyers must earn a maximum of 80% of the area median income (AMI) in the zip code they’re buying a home. You can check your area’s income limit using the Home Possible Income & Property Eligibility Tool to see income limits for specific properties.
Besides its down payment requirement of as little as 3%, Home Possible® now offers more options to increase homeownership for lower-income borrowers. To highlight some additional features, a borrower can include Co-borrowers who do not live in the home for a borrower’s one-unit residence, borrowers are permitted to have another financed property, and more –all with competitive pricing and the ease of a conventional mortgage.
The Home Possible program is ideal for:
- FICO Scores 620+
- First-time buyers who plan to occupy the home as a primary residence
- Co-Borrowers do not need to occupy the home.
- 1-4 units, condos, and planned-unit developments; manufactured homes are eligible with certain restrictions.
- Low down payment with a maximum of 97% LTV, 105% TLTV with Affordable Seconds®, and 97% HTLTV for 1-unit properties.
- Qualifying income is limited to 80% of Area Median Income (AMI), effective July 28, 2019.
- There are no geographic limits on loan amounts.
- Mortgage insurance (MI) on 1-unit properties can be canceled after the loan balance drops below 80% of the home’s appraised value and cancellation criteria are met.
- Down payment can come from various sources, including family, employer-assistance programs, secondary financing, and sweat equity.