And I thought the 10% DP loans I got back in the days were sweet enough.
Freddie Mac loosens requirements for Home Possible Mortgage program
Beginning October 29, 2018, lenders will be able to offer Home Possible Mortgages to buyers with limited down payment funds. Under the consolidated program, eligible homebuyers will include:
-
non-occupant buyers for mortgages secured by one-unit properties with LTVs no higher than:
- 95% for Loan Product Advisor Mortgages; or
- 90% for manually underwritten mortgages (non-occupant buyers were previously excluded from the programs);
- those who own other properties (buyers who own other properties were previously limited);
- buyers with super conforming mortgages (mortgages with high maximum mortgage limits for homes located in high-cost areas) when the mortgage:
- is submitted and receives an “Accept Risk” classification through the Loan Product Advisor; and
- has an LTV no higher than 95% (super conforming mortgages were previously not permitted);
- buyers with secondary financing, including home equity lines of credit (HELOCs) , for most cases when the mortgage’s LTV is no higher than 97% (secondary financing was previously limited to 95% LTV);
- buyers using adjustable rate mortgages (ARMs) , when the LTV is no higher than 75% (ARMs were previously not permitted); and
- buyers with a maximum 45% DTI for manually underwritten mortgages (previously the maximum DTI was 45% for Home Possible Mortgages and 43% for Home Possible Advantage Mortgages). [Freddie Mac Bulletin 2018-13]