Rating, a lender may or may not introduce you to a credit counseling service or credit improvement company who may or may not be able to assist you with improving your credit for a fee.How can you tell Fannie Mae (FNMA) and Freddie Mac (FHLMC) apart?įannie Mae and Freddie Mac were both established by the government to boost the housing market. In the event that you do not qualify for a credit rating based on the required minimum credit Minimum credit ratings may vary according to lender and mortgage product. Consumers who do not have the minimum acceptable credit required by the lender are unlikely to be approved for mortgage refinancing. When applying for a mortgage credit product, lenders will commonly require you to provide a valid social security number and submit to a credit check. In many instances, fees or costs can amount to several thousand dollars and can be due upon the origination of the mortgage credit product. Upon the completion of your inquiry, we will work hard to match you with a lender who may assist you with a mortgage application and provide mortgage product eligibility requirements for your individual situation.Īny mortgage product that a lender may offer you will carry fees or costs including closing costs, origination points, and/or refinancing fees. When inquiring about a mortgage on this site, this is not a mortgage application. After you compare your options, you can choose the loan that suits your financial needs the most.įiled Under: Home Purchase Loans, Loan Guidelines Tagged With: freddie mac, Home Possible mortgages, income requirements We recommend that you get quotes from at least three lenders so that you know the average rate and closing costs for the area. Just as is the case with any loan program, it pays to shop around. This makes it much easier for a large number of people to secure financing for a home than ever before. If you purchase one of the types of homes from above, you only need a 3% down payment and you can have a credit score as low as 620 in many cases. In fact, it is only for first-time homebuyers, which Freddie Mac considers anyone that hasn’t owned a home before or those that have not owned a home in the last three years.
This program is not for second mortgages or investment homes. No matter the home type, you must live in the property as your primary residence. You can use the Freddie Mac Home Possible program on a large variety of home types including: If you live with someone that isn’t on the loan, their income doesn’t count.
It’s important to know that you can only use borrower income to qualify for the loan. You can also click to see if the property is eligible for down payment assistance. The program will then show you the Home Possible Income Limit as well as 80% and 50% of the limit. On the map, enter the address of the property you would like to purchase. You can figure out if you qualify for the program, using this link to Freddie Mac. If you do, there aren’t any restrictions regarding how much income you can make. This is the case unless you live in a low-income census tract. Just what does Freddie Mac consider low income? In general, you can’t make more than 100% of the average median income for the area. It is supposed to help these families realize homeownership despite not having a large amount of money to put down on the home. The Freddie Mac Home Possible program is geared toward low and moderate-income families. Learn the income and property eligibility guidelines to determine if you are a good candidate for this loan. Looking for Current Mortgage Interest Rates? Click Here. This Freddie Mac program provides you with conventional financing while only requiring a 3% down payment. If you are a credit-worthy borrower that just doesn’t have a large down payment, you may be a good candidate for the Home Possible program.