New Low-Downpayment Mortgage Aims to Change the Game for Homebuyers
Freddie Mac recently launched Home Possible Advantage(SM), an affordable conforming, conventional mortgage with a three percent downpayment requirement designed to make responsible homeownership accessible to more first-time buyers and other qualified borrowers with limited downpayment savings.
“Home Possible Advantage gives qualified borrowers with limited downpayment savings a responsible path to homeownership and lenders a new tool for reaching eligible working families ready to own a home of their own,” says Dave Lowman, Executive Vice President, Single-Family Business at Freddie Mac. “Home Possible Advantage is Freddie Mac’s newest effort to foster a strong and stable mortgage market.”
Home Possible Advantage offers qualified low- and moderate-income borrowers a conforming conventional mortgage with a maximum loan-to-value ratio of 97 percent.
Home Possible Advantage mortgages can be used to buy a single unit property or for a “no cash out” refinance of an existing mortgage.
First time homebuyers must participate in an acceptable borrower education program, like Freddie Mac’s CreditSmart®, to qualify for Home Possible Advantage.
Home Possible Advantage mortgages are available as 15-, 20-, and 30-year fixed rate mortgages.
For more information, visit http://www.freddiemac.com/singlefamily/homepossible. Lenders should contact their Freddie Mac representative and interested borrowers should contact a Freddie Mac lender.
For more information, visit http://www.freddiemac.com.
Reprinted with permission from RISMedia. ©2014. All rights reserved.