Want to Break Through Barriers to Homeownership

Increasing home prices low relative incomes and heavy debt burdens make it challenging for many potential homeowners to save for a mortgage down payment In fact saving for a down payment remains the most common barrier to accessing homeownership according to the Urban Institute research report Barriers to Accessing HomeownershipmdashDown Payment Credit and Affordability

Freddie Macrsquos Home Possiblereg mortgage can help creditworthy low- to moderate-income borrowers qualify for a mortgage enabling the dream of sustainable homeownership for those who might not even know they can dare to dream

Barriers Market Opportunities The Solution Home Possible

30 of homeowners and 39 of renters surveyed still believe that more than 20 is needed for a mortgage down payment

In 2017 the US median down payment was 5 indicating broad adoption of low down payment programs

Home Possible offers a low 3 down payment option for those ready to purchase but challenged with saving for a down payment

Only 23 of consumers were somewhat familiar with low down payment programs

25-45 of millennials have mortgage-ready credit profiles and can afford a single-family home in most areas

New qualifying flexibilities are available to meet an array of borrower needs

More than two-thirds of renters said affording the down payment was a key barrier to homeownership

Nearly 5 million low- to moderate-income borrowers are mortgage ready and could be looking for 3 solutions

Itrsquos millennial friendlymdash177 of Home Possible loans between 2015 and 2018 went to millennial borrowers

53 cited qualifying for a loan to be a major obstacle to buying a home

You can bridge awareness gaps with borrower education and marketing

Great for first-timers toomdashnearly 80 of Home Possible loans go to first-time homebuyers

Freddie Mac has identified a large mortgage ready population via the following research criteriaAge 40 or younger | Non-mortgage holder | FICO over 620 | Debt-to-income ratio 25 or less No foreclosures or bankruptcies in the past 84 months | No serious delinquencies in the past 12 months

copy 2019 Freddie MacFreddieMaccom

copy 2019 Freddie MacFreddieMaccom

Give Your Borrowers the Flexibility They Need With a Home Possible Mortgage

Down Payment Flexibility Qualifying Flexibility Income Flexibility

Provide options for obtaining funds sectsect Gifts from family

sectsect Employer-assistance programs

sectsect Secondary financing

sectsect Sweat equity

Help them qualify with sectsect With a non-occupying borrower

sectsect While owning another property

sectsect Using rental proceeds as income

Offer options for

sectsect No income limits in low-income census tracts

sectsect Otherwise available up to 100 percent Area Median Income (AMI)

Consider this Freddie Mac has access to multiple mortgage insurance options that can be cancelled when borrowers reach an 80 percent loan-to-value ratio and meet certain criteria This can save borrowers thousands compared to FHA loans that require mortgage insurance for the life of the loan

Down Payment Assistance Community Outreach Use Loan Product Advisorreg

Connect your borrowers with one of the nationrsquos 2527 community-agency programs to access down payment grants and loans

Become a valued partner by offering seminars or online marketing to inform consumers about mortgage readiness and available assistance programs Many potential borrowers donrsquot even realize they could qualify for a 3-down mortgage

Increase certainty by always submitting loan applications to Loan Product Advisormdashyoursquoll automatically learn if your applications are eligible for Home Possible and other benefits like appraisal waivers and automated asset and income capabilities

Pro Tip Freddie Mac has tools that make it easier for you to help your customers with Home Possible mortgages Check out our Home Possible Income amp Property Eligibility tool and send your borrowers to MyHome by Freddie Mac and Down Payment Resource

Capturing Opportunities with Potential BorrowersCapturing Opportunities with Potential Borrowers

sectsect Visit FreddieMaccomsinglefamilyhomepossible

sectsect View our Home Possible fact sheets

For More Information

sectsect Get training at The Learning Center for Freddie Mac clients

sectsect Call your Freddie Mac representative or 800-FREDDIE