Freddie Mac announced its Home Possible Advantage program, an affordable conforming, conventional mortgage with a 3% down payment to help more first-homebuyers and other qualified borrowers jump into the market. “Home Possible Advantage gives qualified borrowers with limited down payment funds an opportunity for a path to homeownership. It also gives lenders a new tool for reaching eligible working families a chance to own a home of their own, a slice of the American Dream. Home Possible Advantage is Freddie Mac’s newest effort to foster a strong and stable mortgage market,” Dave Lowman, executive vice president of Single-Family Business at Freddie Mac. The new program offers qualified low-and moderate-income borrowers a conforming conventional mortgage with a 3% down payment with a maximum loan-to-value of 97% that can be used to buy a single unit property or for a “no cash out” refinance of an existing mortgage. Freddie is not limiting its product to first-time homebuyers. But if they are first-time homebuyers, they must participate in an acceptable borrower education program, like Freddie Mac’s CreditSmart, to qualify for Home Possible Advantage. Meanwhile, Fannie Mae is rolling out an option for qualified first-time homebuyers that will also allow for a down payment as low as 3%.
For more information;