Freddie Mac Home Possible
A Freddie Mac conventional mortgage for very-low- to moderate-income borrowers with a down payment as low as 3%. Income is generally limited to 80% of the property area’s median income.
- Down payment
- Down payment as low as 3%; up to 97% LTV for an eligible one-unit fixed-rate mortgage.
- Credit context
- Freddie Mac underwriting rules apply; the public product guidance does not establish one universal numeric borrower score, and lender overlays may be stricter.
- Income rules
- Qualifying income may not exceed 80% of AMI for the mortgaged property location.
Individual lenders set the interest rate, fees, mortgage-insurance treatment, and final approval requirements. Compare written Loan Estimates before choosing.
How repayment works
Your monthly housing payment usually includes principal and interest, and may also include property taxes, homeowners insurance, mortgage insurance, and association fees. Your lender’s written Loan Estimate and Closing Disclosure control the actual costs and terms.
A lower advertised down payment does not necessarily mean the lowest monthly payment or lowest total cost.
Who it may fit
- First-time buyers who want a clearer path
- Buyers building a clearer paper trail
These are situations worth exploring, not a qualification decision.
What could rule it out
- Household income may not exceed 80% of area median income for the property location.
- Repeat buyers may use this loan type, subject to the other rules.