Equal Housing Lender
Freddie Mac Introduces Lower 95% LTV Home Possible Mortgage for 2-4 Unit Multi-Family Properties!
Pamela M. Marron • Nov 17, 2021
In their quest to make homes more affordable, Freddie Mac reduced the maximum loan to value (LTV) for multi-family units to 95%, a reduction of 10% down payment previously needed. Further, this financing will allow a total loan to value (TLTV) up to 105% with permitted secondary financing that is an Affordable Second.
Have you considered showing 2-4 unit properties to younger and older prospective homebuyers to live in as a primary residence? If yes, you might want to check your market for the availability of these properties that just got more affordable to purchase.
There is an income cap for this Home Possible loan of 80% Area Median Income (AMI) which can be found on the
Freddie Mac Home Possible Income and Property Eligibility Tool. First-time homebuyers must complete a Homeownership course. The minimum credit score is noted as 620, and the Freddie Mac Loan Prospect Advisor must receive an approval.
If the homebuyer purchases the multi-family unit to owner-occupy one of the units, rental income of the other units can be used.
Click here for details.
This program is especially beneficial in areas where multi-family units are more plentiful. This could boost younger buyers looking for a first home and don’t mind having their home attached to other dwellings that can also produce rental income. To qualify for this loan, you must occupy one of the units.
Multi-family units are often overlooked by families or are sold to investors. You may be surprised by the interest in multi-family dwellings by younger potential homebuyers and even retirees that want to be closer to neighbors.
Look into this updated
Freddie Mac Home Possible program that just made purchasing a 2-4 unit property more affordable!
Down Payment Connect is already being used by MLOs and Realtors. Now it's available to HUD Counselors through HomePrep! Down payment assistance is quickly rising to the top need for clients wishing to purchase a home. Down Payment Connect , the back-end data provider for the parent Downpaymentresource.com , houses every down payment assistance program in the US and provides extremely detailed information laid out in a consistent format for each DPA program in their system. Throughout the last two years, Downpaymentresource.com administrators have worked with MLO’s and the HomePrep developers to add nearly all wholesale down payment assistance programs to their platform and they didn't stop there! Extensive filters that allow for selection of specific client needs such as type (ie. SFR, manufactured homes, condos, multi-family, ADU’s), uses like renovation, above AMI income levels, non-1st time homebuyers are just a few of the filters you will find along with stand alone 2nd mortgages, combined 1st and 2nd mortgages and grants. DownpaymentResource.com is also in many MLS systems across the US and provides limited directory information and a free landing page for realtors to promote that they use DPA. Both MLO’s and realtors can subscribe to Down Payment Connect to get more of the extensive directory and back-end tools. Now, through HomePrep, HUD counselors can also use the Down Payment Connect system to filter trhough DPA programs that clients are qualified for, and can even provide wholesale programs when working with an independent loan originator (often called a mortgage broker)! Through HomePrep, HUD counselors are now able to provide MLO’s and clients with the DPA programs that they have found the client is eligible for.
If you have FFEL Student Loans, Take Action Before April 30th!
Three great tools that mortgage loan originators (MLO) can use to assist clients who need help with credit, down payment assistance and student loan repayment services have been used, fine-tuned and are already in use with individual MLO’s. These tools combined with the Freddie Mac HomeCoach automated system along with budgeting help and Homebuyer Education are all integrated in the HomePrep online platform that connects MLO’s with clients who have challenges to HUD counselors that get them mortgage ready.
Pam Marron, NMLS# 246438
Innovative Mortgage Services, Inc. NMLS# 250769
