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An Affordable Path to Homeownership
Home Possible® Mortgage
HomePossible makes buying a home more affordable by combining a low 3% down payment with flexible funding options and lower long-term costs. Unlike FHA, mortgage insurance can be removed, helping you save money as you build equity. For buyers with steady credit but limited savings, HomePossible is often the smarter path to affordable homeownership.
Key Points:
as little as 3% down
flexible funding options
ower long-term costs compared to fha
Why It’s a Smart Choice
For those who may not have a large savings for a down payment, the HomePossible® Program allows buying with just 3% down. Plus, the flexibility in down payment sources and lower mortgage insurance make it an affordable and practical alternative to FHA loans without the added cost of premiums.
Consider HomePossible® if you:
- Have a credit score of 620 or above
- Are buying your primary residence
- Meet Freddie Mac’s income eligibility (up to 80% AMI)
- Want low money down and lower long-term costs
Program Overview
Here’s how it can help make homeownership easier:
- Low Down Payment & Flexible Funding: With HomePossible®, you can put down as little as 3% and use funds from various sources—like gift funds, grants, sweat equity, employer programs, or secondary financing.
- Income-Targeted Eligibility: Designed for low to moderate-income buyers, typically those earning up to 80% of the Area Median Income (AMI).
- High Loan-to-Value (LTV): UWM supports up to 97% LTV, and 105% Total LTV (TLTV) when paired with “Affordable Seconds®” for additional down payment or closing cost assistance.
- Wide Property Eligibility: You can use HomePossible® for owner-occupied homes including single-family houses, condos, co-ops, 2–4 unit properties, and certain manufactured homes.
- Lower Mortgage Insurance (MI): Compared to FHA loans, HomePossible® typically offers lower MI, and cancellation is possible once your loan balance drops below 80% of the home’s value.
Comparing Your Loan Options
| Feature | HomePossible (UWM) | FHA Loan | Standard Conventional |
|---|---|---|---|
| Minimum Down Payment | 3% | 3.5% | 5%+ |
| Credit Score Requirement | 620+ | 580+ (with 3.5% down) | 620+ |
| Income Limits | Up to 80% of Area Median Income (AMI) | None | None |
| Mortgage Insurance (MI) | Lower cost, cancellable at 80% LTV | Higher cost, permanent unless you refinance | Required if under 20% down, cancellable |
| Eligible Properties | 1 to 4 unit homes, condos, co-ops, manufactured homes | 1 to 4 unit homes, FHA approved condos, townhomes | 1 to 4 unit homes, condos, townhomes |
| Down Payment Sources | Gifts, grants, employer programs, secondary loans | Gifts, grants, employer programs | Personal funds, some gifts allowed |
| Best For | Low to moderate income borrowers who want low MI | Borrowers with lower credit scores | Borrowers with stronger credit and savings |
FAQ
Q: What type of bank statements do I need?
A: You can provide 12 or 24 months of personal or business bank statements. Personal deposits are counted at 100%, and business deposits at up to 85%.
Q: Can this program be used for investment properties?
A: Yes, this program is available for primary residences, second homes, and investment properties, including multi-unit properties.
Q: What are the maximum loan amounts and LTV limits?
A: Loan amounts are available up to 4 million dollars. LTV limits are up to 90% for purchases, 85% for rate-and-term refinances, and 80% for cash-out refinances.
Q: Is there a minimum credit score requirement?
A: Yes, a minimum FICO score of 600 is required.
Q: Can I use assets to help qualify?
A: Yes, assets such as investment accounts can be included to increase qualifying income.
Q: Are transfers from business accounts allowed?
A: Yes, transferring funds from business accounts to personal accounts is allowed for income verification purposes.
Let’s See What You Qualify For
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Premier Point Mortgage
NMLS #2184348
Premier Point Mortgage guides you every step of the way, making your journey to homeownership stress free; now that’s Home Financing Simplified!
990 Raritan Rd. Clark, NJ 07066
Legal Statements
Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.
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