HW Media connects and informs decision makers across the housing economy. Professionals rely on HW Media for breaking news, reporting, and industry data and rankings. Moving the Housing Market Forward.
Mortgage

Freddie Mac launches Home Possible Advantage program with 97% LTV

Offers 3% down payments

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 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. 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 maximum loan-to-value of 97% and 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.

Since this product is a lot newer for Freddie, it is waiting to implement the product until March 23 to give itself more time to do some foundation work, officials said on a conference call with reporters Monday morning.  

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%.

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please