Freddie Mac Home Possible Mortgage

At a glance

Amount

3% down conventional loan for buyers at or below 80% of area median income

Type of help

Other help

Where

Nationwide

Run by

Freddie Mac, offered through participating lenders

First-time buyer

Repeat buyers welcome

Income limit

Up to 80% of area median income

Minimum credit score

660

Homebuyer education

Required

How the other help works

A special purchase path, discount, or loan type that lowers what you need at closing.

• Monthly payment: Yes

Who qualifies

• Repeat buyers welcome. Repeat buyers qualify. When every occupying borrower is a first-time buyer, at least one must complete homeownership education before closing.
• Income. Total qualifying income at or below 80% of the area median income for the property's location. Buyers at or below 50% of AMI are classified as very low income and may qualify for extra pricing help. Freddie Mac's Home Possible eligibility map checks an address (checked 2026-09-23).
• Property types: Single-family, Townhouse, Condo, PUD, Co-op, 2 to 4 units if owner-occupied, Manufactured home with restrictions. Must be your primary residence.
• Maximum loan-to-value is 97% on a one-unit fixed-rate purchase. With an eligible Affordable Second the combined total can reach 105%, so an approved assistance loan can cover the whole down payment and closing costs.
• The 660 minimum applies to manually underwritten one-unit fixed-rate purchases. Loans run through Freddie Mac's automated system are judged on the overall file, and borrowers without credit scores can go up to 95% loan-to-value.
• Non-occupying co-borrowers are allowed on one-unit homes at up to 95% loan-to-value when at least one borrower lives in the home.
• Occupying borrowers may not own more than two financed residential properties including the new home.
• Rental income from a boarder who has lived with you for at least a year can count for up to 30% of qualifying income.

How to apply

1. 1Check the address and your income in Freddie Mac's Home Possible Income and Property Eligibility Tool, or have a lender run it.
2. 2Ask lenders to quote Home Possible next to HomeReady and FHA. Sean does not steer buyers to any lender; most lenders offer all three.
3. 3If everyone on the loan is a first-time buyer, complete an approved homeownership education course such as Freddie Mac's CreditSmart Homebuyer U before closing.
4. 4Tell the lender about any down payment assistance so it can be structured as an Affordable Second and underwritten with the first mortgage.

Watch out for

• 3% down does not include closing costs and prepaids. Grants, seller credits, and Affordable Seconds are how most buyers cover them.
• The income cap follows the property's location. A home one county over can have a different AMI figure.
• Mortgage insurance is required above 80% loan-to-value. It can be cancelled later, which is a real advantage over FHA, but it is part of your payment at the start.
• An Affordable Second has to come from a public agency, nonprofit, Federal Home Loan Bank program, or employer. The seller cannot fund it.

Straight answers

Sources

• Freddie Mac, Home Possible product page (read Sep 23, 2026)
• Freddie Mac, Home Possible Mortgage fact sheet (February 2026) (read Sep 23, 2026)
• Freddie Mac, Home Possible Income and Property Eligibility Tool (read Sep 23, 2026)

Program details are summarized from public sources and change without notice. Funding badges reflect the last time we checked, not a guarantee of availability. This is buyer education from a real estate agent, not a loan pre-approval or a commitment to lend. Eligibility is decided by each program administrator and your lender. Equal Housing Opportunity.