The Your Path Mortgage Program is designed to help individuals with low-to-moderate incomes or alternate sources of income qualify for mortgages. The program is offered through a collaboration between Freddie Mac, Alterra Home Loans and New American Funding. Freddie Mac is a government-sponsored enterprise that provides capital to lenders and works with lenders to develop mortgage programs for borrowers. Alterra Home Loans and New American Funding are lenders that focus on underserved borrowers, particularly minority populations. The Your Path Program is based on Freddie Mac’s low down payment Home Possible Mortgage Program. Like the Home Possible Program, the Your Path Program requires a down payment of only 3% and no personal financial contribution from the borrower to buy a home. Additionally, as outlined below, the two programs have many of the same borrower qualification requirements and program eligibility guidelines. Both programs also allow applicants to include income from non-borrower household members such as relatives or boarders to qualify for the mortgage or improve the borrower’s debt-to-income ratio, which may allow you to get approved for a larger mortgage. For example if you purchase a single family property and relatives or boarders intend to live with you in the property for at least twelve months then you can use the income from the individuals to qualify for the mortgage, even though they are not co-borrowers and do not own the home. Additionally, if you purchase a multi-family property (up to four units), the rental income from the units you do not occupy could help you qualify for the mortgage. Although there is significant overlap between the two program, the Your Path Mortgage Program offers several unique and innovative features intended to make it easier for borrowers to qualify for a mortgage. Key differentiators of the Your Path Mortgage Program include: - The ability to include borrower income from a second job with only twelve months of work history instead of two years of history - More options for self-employed borrowers to demonstrate their income Enhanced flexibility to include income from seasonal employment - Reduced bank documentation required to demonstrate proof of a down payment - These features, along with permitting non-borrower household income to be used to qualify for a mortgage, are designed to address the growth in multi-generational households as well as the increasing number of borrowers with non-traditional sources of income. By applying more flexible borrower qualification requirements, the Your Path Mortgage Program makes home ownership accessible to more people. - The Your Path Program competes with conventional low / no down payment programs such as the HomeReady Mortgage Program, Bank of America Affordable Loan Solution Program and Wells Fargo yourFirst Mortgage Program as well as government-backed programs such as the FHA, VA and USDA programs. Be sure to compare and understand multiple low / no down payment mortgage programs to find the one that best meets your needs.