Freddie Mac recently increased the income limits for its Home Possible mortgage program. The Home Possible program is intended to give flexible loan options for low-to-moderate income earners for all of their property financing needs.
The Home Possible Program
This program offers mortgage loans with at least 3% down, fixed interest rate options, and other flexible loan terms. In addition to tailoring the program to very low and low-to-moderate income earners, Freddie Mac has directed the Home Possible program towards first-time homebuyers, retirees, and so-called “move up” buyers – borrowers who once owned rental or commercial properties. The program is also tailored to the needs of families in underserved and otherwise economically disadvantaged communities.
If you previously applied for a Home Possible mortgage, it may be time to try again. The income limit set by Freddie Mac is straightforward: in order to qualify, your annual income must not exceed 100% of your neighborhood’s median income. Recently, however, Freddie Mac is reporting that in almost 99% of counties nationwide, median incomes have increased. Because of this, your once-ineligible income level may now satisfy Freddie Mac’s requirements. To check your area’s median income, use Freddie Mac’s map database here.
Be sure to explore Home Possible and other HUD-sponsored programs, such as FHA loans, HECMs, and HARP. These programs are incredibly useful and can help you realize your homeownership dreams in an affordable way.