Changing Income Limits for Home Possible Mortgages

Home Possible

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.

What’s Changed?

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.