What Is Home Possible?
Home Possible is Freddie Mac's affordable mortgage program for low-to-moderate income borrowers. Like HomeReady, it requires just 3% down and offers reduced PMI rates. Income limits are set at 80% of the area median income. Available for primary residences including single-family homes, condos, and manufactured housing.
A standout feature is that Home Possible allows sweat equity to count toward the down payment — if you put labor into a home, that work can satisfy part or all of the 3% requirement.
Home Possible vs. HomeReady: Both offer 3% down and reduced PMI. Home Possible allows sweat equity and covers manufactured housing. HomeReady allows boarder income. The right choice depends on your specific situation.
Who Home Possible Is For
- Low-to-moderate income borrowers at or below 80% AMI
- First-time and repeat homebuyers
- Borrowers using sweat equity for their down payment
- Manufactured home buyers looking for conventional financing
Key Features
660 minimum credit score for most scenarios. Up to 45% DTI (exceptions to 50%). Full down payment can come from gifts, grants, employer assistance, or sweat equity. PMI is reduced and cancellable. Homebuyer education required for first-time buyers.