What is the Home Possible Advantage Program?

Home / Blog / What is the Home Possible Advantage Program?

What is the Home Possible Advantage Program?

The Federal Home Loan Mortgage Corporation, or Freddie Mac, has an exciting program to suit the needs of individuals and families looking for low down payment options. The Home Possible Advantage program offers an affordable, conforming conventional home mortgage with lower percent down payment. This is designed to help first-time home buyers and other borrowers with home ownership.

Qualified Borrowers With Limited Savings

The Home Possible Advantage option allows qualified borrowers who have limited savings for a down payment and may put you on the responsible path to owning a home. The program also gives lenders an additional tool for assisting eligible families who are ready to own their home. This is a concerted effort by Freddie Mac to foster a stable and strong mortgage market while bringing eligible consumers to the table.

This program offers certain qualified low- and moderate-income borrowers the opportunity for a conforming conventional mortgage with lower down payments. This type of loan may be used to purchase a single unit property or to obtain a “no cash out” refinancing of an already existing mortgage.

First-Time and Previous Home Owners

This home loan product is not limited to only first-time homebuyers. However, if this is your first time purchasing a home, Freddie Mac will require you to take an approved borrower educational program, such as Freddie Mac’s CreditSmart. This will prepare you for the responsibilities of owning a home as well as help you qualify for the Home Possible Advantage program.

Below are some of the key features of this Freddie Mac mortgage offering:

  • Financing applies to a 1 unit primary residence. This includes condos and PUDs.       
  • This program is for first-time borrowers, retirees, move-up borrowers, low- to moderate-income borrowers and families in underserved neighborhoods.
  • Benefits include a low down payment and reduced mortgage insurance coverage requirements, flexible sources of funds, no minimum borrower contribution, no reserves required for 1-unit, and fixed rate loans.

Other features include:

  • LP approval is required. A minimum credit score is also required despite LP response.
  • Every borrower must be a resident of the primary property. No borrower may own an interest in other real properties.
  • Homeownership educational requirements must be met. All borrowers will need to meet income limits.
  • Types of eligible properties include 1-unit properties, planned unit developments, and condos. Manufactured homes are not eligible.
  • You may use other sources for your down payment, such as family or secondary financing.
  • Mortgage insurance may be canceled after loan balance is reduced to below 80 percent of appraised value.
  • Up to 30 year fixed rate mortgages.
  • No income limits in underserved neighborhoods.

If you think you may qualify for the Home Possible Advantage program, and if this sounds like a good fit for your particular circumstances, take some time to learn a little more. This may just be your time to become a homeowner. Contact ubermortgage to learn more about this program. Übermortage can guide you through the qualification and application process, helping to make your dream of home ownership a reality

9323e1a9 db21 47ec 9c1e 5b29415398b6 13d0f484 d054 4a27 ac6e 8468e298e5ba a1d178dd 2403 4939 aaa5 9aad3a71209b 7c69bf65 e773 4b2a b91b a14f955e3ba9 4f4abb62 7601 4c33 96cd 98adcc3832b4 bfab4aff 6d5c 4cc0 ba67 6aa13bc7af8d 526bd12e ba0d 4398 9bd5 2066b3e934a4 2f6ef8df 3475 419c 868f f9a0259dc0f9 2e541d0a d4bb 4c2f 963d 3cfd2f393f20 ad7228c1 a7a5 418a 9b45 eadc4a23875d a375ab0c d545 4b77 b398 627978c35d0c 028385a3 db09 430d 8b32 bb3b4f33df3c 58e25586 831d 4e21 a66a c561c9449cf7 5ba8282b 6476 457e b236 9b4c649ff4d3 8179f91a 8ce2 47e7 94c5 7abdfedcc719 2428ce0c f2f9 4357 a855 7523155eda8b eb998263 ee00 4d76 88d0 e9362c4ac426 ecdab7dd 1103 49db b99c 6b9249ea3a46 67a400c7 4224 469e 8470 5317c5aea39f 1db6336d e263 4997 9e3d d2e2cd35b280 101db9d1 c064 4807 8113 0de1467917f4 bd459a40 5672 4598 a2e3 5badf9cffd6a 120c408e 9c3b 4957 9d86 f6c68bf457d5