According to Freddie Mac's requirements, you'll need a FICO score of 660 or higher to qualify for a Home Possible loan.
"Home Possible Qualifying Income Limit" is the same as "80% Area Median Income". This means that the borrower's income cannot exceed 80% of the AMI when qualifying for a Home Possible mortgage for properties within this census tract.
HomeOne income limits
One of the best features of Freddie Mac's HomeOne loan is that there are no income caps to qualify. That makes the program more accessible than some other 3-percent-down loans.
Evaluating debt ratios
When the Borrower's monthly debt payment to income ratio exceeds 45%, the loan is ineligible for sale to Freddie Mac. As a guideline, the monthly debt payment-to-income ratio should not be greater than 33% to 36% of the Borrower's stable monthly income.
For one-unit PRIMARY residences, borrowers are not required to pay off outstanding collections or non-mortgage charged-off accounts. The amount you owe does not matter. You DO NOT have to pay them off.
Freddie Mac's rules are similar to Fannie Mae's, but what about FHA lenders? FHA does not consider medical debt in its underwriting. It says, “Medical Collections are not required to be paid and satisfied.”
Available to qualified first-time homebuyers for a low down payment of just 3%, the Freddie Mac HomeOne® mortgage is a low down payment option that serves the needs of many first-time homebuyers, along with no cash-out refinance borrowers.
No. This course is not “HUD-approved” as HUD does not approve homeownership education curricula. The course aligns with the National Industry Standards for Homeownership Education and Counseling (pre-purchase content).
Frequently asked questions about Fannie Mae and Freddie Mac
Is Fannie Mae the FHA? No. The Federal Housing Administration is a government agency that insures loans made by lenders to borrowers with low to moderate incomes.
All the loans bought by Fannie Mae and Freddie Mac are called “conforming” or “conventional” loans.
Do you have to be a first-time homebuyer to qualify for a Home Possible mortgage? No. The Home Possible mortgage is available to all qualified borrowers whose income does not exceed 80% of area median income (AMI).
If you are not using Loan Product Advisor, Freddie Mac requires the use of Credit Scores to underwrite Manually Underwritten Mortgages. ... If there are three usable Credit Scores, the middle score is the Underwriting Score*. ▪ If there are two usable Credit Scores, the lower score is the Underwriting Score.
Approval Guidelines. All loans backed by Fannie Mae and Freddie Mac are typically conventional loans, which are not insured by the government.
Because Fannie Mae has a minimum qualifying credit score of 620, this should help more clients qualify together on the loan, allowing for the use of all incomes to determine what they can afford. This also helps clients who are still working on their credit but may be applying with a co-signer.
You'll need a FICO® credit score of 660 or higher to qualify for a Home Possible loan, according to Freddie Mac's guidelines.
An FHA loan requires a minimum 3.5% down payment for credit scores of 580 and higher. If you can make a 10% down payment, your credit score can be in the 500 – 579 range. Rocket Mortgage® requires a minimum credit score of 580 for FHA loans.
Just because the creditor is no longer collecting the debt, it is still a big negative on a credit report and will affect mortgage qualification. However, buying or refinancing a home with either collections or charge offs is still possible.
For student loans in repayment, grace period, deferment or forbearance, Freddie Mac will use either: the monthly payment amount reported on your credit report if that amount is greater than $0; or. 0.5% of the outstanding balance of your student loans if the monthly payment amount on your credit report is $0.
All credit reports must be dated within 120 days before, as applicable, the Note Date, or for Construction Conversion and Renovation Mortgages, the Effective Date of Permanent Financing, the modification date for Seller-Owned Modified Mortgages, the Conversion Date for Seller-Owned Converted Mortgages or the date of ...
We have updated Freddie Mac Loan Product Advisor® to allow you to assess mortgages for borrowers without credit scores. Currently, you may deliver Loan Product Advisor Accept mortgages to Freddie Mac where not all borrowers on the mortgage have a usable credit score.
At least three Tradelines, whether or not on the credit report, or. If a Borrower does not have three Tradelines, at least four Noncredit Payment References or a total of four Tradelines and Noncredit Payment References.