3% Home Possible program (by Freddie Mac)

3% Down Payment - A responsible, low down payment mortgage option for first-time homebuyers and low- and moderate-income borrowers.

The Home Possible Mortgage program enables first-time home buyers and low- to moderate-income borrowers to achieve home ownership with only a 3% down payment.

The program allows homeowners the ability to refinance up to 97 percent loan-to-value, regardless of their existing loan type. Likewise, borrowers can purchase a home with as little as 3% down, even if they aren’t first-time home buyers. There are also no income limits for those borrowers in under-served areas.

The Home Possible program opens a lot of possibilities for borrowers when it comes to home financing needs.
Home Possible and Home Possible Advantage are better alternatives than FHA financing for borrowers looking to purchase with a low-down payment or refinance with limited equity.

Home Possible and Home Possible Advantage Highlights:
  • Freddie Mac’s conventional alternative to FHA
  • Thirty-year fixed rate
  • Purchase and rate/term refinance up to 97 percent
  • Refinances up to 97 percent LTV, regardless of current mortgage program
  • One-unit, primary residence only
  • Combines lower mortgage insurance factors with LLPA caps to minimize payment
Eligible Property Types:

Home Possible

  • 1-to 4-unit primary residences
  • Condos
  • PUDs
  • Manufactured homes (with restrictions)

Home Possible Advantage

  • 1-Unit primary residences only
  • Condos
  • PUDs

PUD: Planned unit developments