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Freddie Mac Home Possible Mortgage

First Time Homebuyers 3% Down First Mortgage

Type Of Program

Tax Credit

Program distribution

Deferred Second Mortgage

Program Originator

Freddie Mac






Freddie Mac offers the Home Possible Mortgage Program to help home buyers with limited resources afford mortgages. The Home Possible program enables home buyers to buy a home with a down payment as low as 3.0% of the property purchase price and no minimum borrower financial contribution. The Home Possible program is similar to Fannie Mae’s Home Ready Mortgage Program.

Typically when you apply for a mortgage only the borrower’s wage income is considered to determine your ability to qualify for a mortgage but with the Home Possible Mortgage Program rental income is also factored into the qualification assessment. For example if you purchase a single family property and rent out a room, the rental income could help you to qualify for the mortgage. Additionally, if you purchase a multi-unit property, the rental income from the units you do not live in could help you qualify for the mortgage.

Please note that to use rental income to qualify for the mortgage on a single unit property you must verify that you received rental payments for at least nine months over the past year. If you have not received regular rental payments in the past, you may not be able to use rental income that you expect to receive in the future to qualify for the Home Possible program if you want to buy a one unit residence such as a home, condominium or coop. The Home Possible Program also allows you to use a non-occupant co-borrower to qualify for the mortgage on a single family property. For example, one of your parents can be a co-borrower on your mortgage even if they do not live in the property with you. In this case, their monthly income and debt expense are included in your mortgage application. If he or she has solid income and relatively low debt, having a relative as a co-borrower can enhance your loan application and improve your ability to get approved for the loan. Important Home Possible Mortgage Program Considerations

AMI Limit



Employer Participation Required


Must Earn Counseling Certificate


Eligibility Limitations

Cash Sale Permitted


Cosigner Permitted


Owner Financing Permitted


Must be Primary Residence


Program Provider's Contact Name

Program Provider's Address

Program Provider's Phone

Program Provider's Email