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