Home Possible

Home Possible

Home Possible is a Freddie Mac community lending program and it is designed to meet the needs of low and moderate income borrowers by providing financing up to 97% loan-to-value. 3% minimum down payment no minimum contribution is required from the borrower. Down payment can be a gift.

Minimum Credit Score and Maximum Loan-To-Value

Freddie Mac require a minimum credit score of 620.

  • 3% Down payment minimum credit score 620
  • Loans below 80% loan-to-value do not require mortgage insurance minimum credit score 620
  • Maximum loan amount $417,000 single family residence
  • Owner-occupied primary residences only
  • First time home buyer program

Source of Down payment

Funds for the borrower’s down payment and/or funds for closing costs and/or prepaids may be obtained from the following:

  • Affordable/Eligible Community Seconds
  • A gift or unsecured loan from a relative, domestic partner, fiancé or fiancée
  • A gift, grant or unsecured loan from a church, a public agency, municipality or a non-profit organization (other than a credit union)
  • Contributions by interested parties, subject to standard interested parties contributions guidelines for conventional mortgages. Seller can contribute.
  • Employer assistance in the form of a grant, a direct fully repayable second mortgage or unsecured loan or a deferred payment second mortgage or unsecured loan
  • Cash on hand

Home Buyer Education

Prior to closing a minimum of one borrower must complete an approved home buyer education program if all borrowers are first time home buyers.

Seller Contributions

Interested party contributions, as a percentage of the sales price or appraised value, whichever is less, are limited to the following values

Maximum seller contributions:

  • 90% and higher loan-to-value maximum 3% contributions
  • 75% up to 90% loan-to-value maximum 6% contributions 
  • 74.9% and below loan-to-value maximum 9% contributions

Credit - The minimum score for an FHA loan to buy a house is 500.

FHA rates are based on your score:

  • 720 - 850 Excellent                      *The lowest rates
  • 680 - 719 Good                            *Very good rates 
  • 679 - 580 Fair                              *Average rates
  • 579 - 500 Poor                             *Higher rates

On January 20, 2010 FHA announced a new policy to address risk. FHA changed the minimum credit score for new borrowers.

  • FHA requirements new borrowers will now be required to have a minimum score of 580 to qualify for 3.5% down payment
  • Borrowers with less than a 580 credit score will be required to put down at least 10%
  • Minimum 500 credit score
  • Home Possible

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We look forward to working with you.

www.MORTGAGE-WORLD.com LLC is an online mortgage company specializing in FHA loans for first time home buyers.

Home Possible® Program


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  • Borrowers may not have any ownership in any other residential property
  • Borrower must complete home buyer counseling
  • Maximum Debt-to-Income Ratio 50%
  • Purchase primary residence owner-occupied only
  • No reserves required

Fannie Mae

Requires a minimum credit score of 620 to buy a home

Fannie Mae minimum

credit score 620

Freddie Mac

Requires a minimum credit score of 620 to buy a home

Freddie Mac minimum

credit score 620

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