1) Should I include spousal or other household income in income qualifications if the spouse is not a borrower on the mortgage?

Only borrower income can be included when determining eligibility for a Home Possible mortgage. You can't include a spouse's income, "household income" or any non-borrower income when qualifying a borrower.

2) Do I need to verify all borrower income if the borrower doesn't need all of their income to qualify for a Home Possible mortgage?

No, you only need to verify a borrower's qualifying income. Take a brief tutorial on income requirements for Home Possible mortgages for more information.

3) Can a borrower qualify for a Home Possible mortgage if they own another property?

Yes, the borrower may have ownership interest in another residential property if they do not occupy the property, and the Seller documents that the borrower meets at least one of the following conditions:

  • They inherited an ownership interest in the property and share ownership with another party.
  • They own the property with another person who has been assigned the debt associated with the property by a court order, such as a divorce decree.
  • They are a cosigner or guarantor on a mortgage, and someone other than the borrower has made payments on that mortgage for at least the most recent 12 months.

4) Do you have to be a first-time homebuyer to qualify for a Home Possible mortgage?

No. However, a borrower seeking a Home Possible mortgage can't have an ownership interest in any other residential property except as described in question 3.

5) Are all properties in disaster areas eligible for Home Possible mortgages?

Home Possible income requirements are waived for properties identified by Loan Product Advisor or the Home Possible Income and Property Eligibility tool as located in federally declared disaster areas. If a mortgage meets all other requirements, it will qualify for a Home Possible mortgage.

 


Connect with a Loan Officer

Loan Officer Thomas Johnston

Loan Officer Thomas Johnston | NMLS# 1583463; Arizona, California, Oregon, Texas and Washington

Thomas is your mortgage loan originator, who works side by side with a strong team that shares the same devotion to excellence.
Experienced, knowledgeable, and always up to date on the industry's latest products, Thomas strives to exceed the customers' expectations in each and every transaction.

Do you have any questions? Please call 866-610-6025


6) My area was recently declared a disaster area by the Federal Emergency Management Agency (FEMA), but neither Loan Product Advisor nor the Home Possible Income and Property Eligibility tool recognize it as a disaster area. When will these tools be updated?

These tools are updated annually when the Federal Housing Finance Agency (FHFA) provides disaster area designation to Freddie Mac.

7) Do all Home Possible borrowers need to occupy the home they're purchasing as their primary residence?

Yes, all Home Possible borrowers must occupy the mortgaged premises as their primary residence.

8) If no borrower on a loan application has a credit score, can I originate a Home Possible mortgage for that loan?

Borrowers without a credit score can qualify for a Home Possible mortgage with a 95 percent maximum LTV in several ways:

  • Through loan product advisor, if they meet requirements in Single-Family Seller/Servicer Guide (Guide)Section 5201.1: Credit assessment with Loan Product Advisor.
  • Through manual underwriting, if they meet the requirements in Guide Section 4501.8: Underwriting requirements for Home Possible Mortgages.


Borrowers without credit scores are not eligible for Home Possible Advantage® mortgages, which have a 97 percent maximum LTV.

9) Can I originate a Home Possible mortgage when I have a mix of borrowers with and without credit scores?

Yes, mortgages in situations where there are a mix of borrowers with and without credit scores can qualify for Home Possible mortgages in several ways:

  • Through loan product advisor, if they meet requirements in Guide Section 5201.1: Credit assessment with Loan Product Advisor.
  • Through manual underwriting, if they meet the requirements in Guide Section 4501.8: Underwriting requirements for Home Possible Mortgages.


Please note that income contributed by a borrower with insufficient credit history can only account for up to 30 percent of the total qualifying income.

10) The Guide states that a borrower's rental income from their one-unit primary residence can’t exceed 30 percent of the total income used to qualify for a Home Possible mortgage. If more than 30 percent of a borrower's income is rental income, how much, if any, of that rental income can be used?

Rental income from a one-unit primary residence can only account for 30 percent of qualifying income. Any portion of the borrower's rental income from their one-unit primary residence which exceeds 30 percent of the total income can't be used to qualify a borrower. For rental income requirements, see Guide Section 4501.9: Borrower income and qualifying ratios for Home Possible Mortgages.

11) If a borrower is seeking a special purpose cash-out mortgage, such as in a divorce settlement, can I originate a Home Possible mortgage for that purpose?

No, a Home Possible mortgage cannot be a cash-out refinance mortgage. Only no cash-out refinance mortgages are eligible for Home Possible. 


Connect with a Loan Officer

Loan Officer Thomas Johnston

Loan Officer Thomas Johnston | NMLS# 1583463; Arizona, California, Oregon, Texas and Washington

Thomas is your mortgage loan originator, who works side by side with a strong team that shares the same devotion to excellence.
Experienced, knowledgeable, and always up to date on the industry's latest products, Thomas strives to exceed the customers' expectations in each and every transaction.

Do you have any questions? Please call 866-610-6025

FAQ Home Possible Mortgages—Freddie Mac is available in the following areas/cities