Freddie Mac is offering an updated Home Possible Income & Property Eligibility Tool which allows lenders to determine if a borrower meets the income requirements for a low down payment mortgage on a specific property.
The map-based Home Possible Income & Property Eligibility tool allows lenders to check for borrower eligibility for a high LTV loan for a property by simply entering that property’s address.
Freddie Mac Home Possible mortgages, which allow down payments between 3 and 5 percent, are often attractive solutions for low- and moderate-income borrowers, first-time homebuyers, millennials, and past homeowners who are returning to the market, according to Freddie Mac.
Borrowers can qualify for a Home Possible Mortgage if their income is up to 170 percent of the area’s median income (AMI). If the property is located in an underserved area, there are no income thresholds. The program also features a free online tutorial to meet the education requirement for first-time homebuyers.
Freddie Mac’s Home Possible Mortgage Program offers the following:
- LTV:Maximum LTV and TLTV of 95 percent.
- Property Options:1-4 units, condos and planned-unit developments; manufactured homes are eligible with certain restrictions.
- Mortgage Flexibility:15- to 30-year fixed-rate mortgages, 5/1, 7/1 and 10/1 ARMs.
- Refinance Options:No cash-out refinancing option is available for borrowers who occupy the property.
Freddie Mac’s Home Possible Advantage Mortgage Program offers the following:
- LTV:Maximum LTV of 97 percent; TLTV 105 percent.
- Property Options:1-unit properties, condos and planned unit developments; manufactured homes are not eligible.
- Stable Mortgages:Fixed-rate mortgages with a term of up to 30 years.
- Refinance Flexibility:Purchase and no cash-out refinancing options available.
- Primary Residence Only:All borrowers must occupy the property as their primary residence.
Click here to check for eligibility for Freddie Mac’s Home Possible mortgage program or for more information about the program.