Freddie Mac Home Possible 3% Down Mortgage Loan – For qualified first-time homebuyers for a low down payment of just 3%
Freddie Mac Home Possible 3% down-payment conventional mortgage loans are a low down payment option that serves the needs of more first-time homebuyers, along with no cash-out refinance borrowers.
This mortgage solution allows for low down payment options for first-time home buyers for homeownership.
Home possible mortgage loans are a great option for FHA loans that require a 3.5% down payment. Fannie Mae has an equivalent product that is called Home Ready with a 3% down payment loan option for conventional loans.
Freddie Mac has another 3% down payment option, called the HomeOne loan product.
HomeOne allows anyone, regardless of their income level or geographic location. HomeOne reflects our dedication to responsible lending, sustainable homeownership, and improving access to credit.
Mortgage Features
- Purchases and no cash-out refinances
- No borrower geographic or income limits
- Homebuyer education is required for purchase transactions when all borrowers are first-time homebuyers
- One-unit properties with fixed-rate financing only
- Standard 35% mortgage insurance coverage required for LTVs > 95%
- Custom mortgage insurance coverage available with a credit fee in price
- Allows both Affordable Seconds® and other secondary financings per Single-Family Seller/Servicer Guide Bulletin requirements
- Accommodates various property types
Benefits
- More flexibility for low down payment financing
- Educational requirements support informed and responsible homeownership
- Eligible for single-family homes, including townhouses and condos
More Information
- Download our HomeOne Fact Sheet [PDF]
- Review HomeOne FAQs
- Learn more about how HomeOne compares to our 97% LTV product, Home Possible Advantage[PDF]
