The Freddie Mac Home Possible loan program in California is designed for qualified low- and moderate-income borrowers. Through Home Possible loans, borrowers can qualify for a conforming conventional mortgage with a down payment as low as 3% of the property purchase price and no minimum borrower financial contribution. This program also can be used for a “no cash out” refinance of an existing mortgage.
Home Possible Loan Features
- Down payment as low as 3% down with no minimum California borrower contribution
- Ability to include rental income from boarders and other units in multi-unit properties to qualify for a mortgage in California
- Potentially reduce interest rate for borrowers with low incomes or for properties in underserved areas
- No up-front California FHA mortgage insurance premium (MIP) and potentially lower ongoing private mortgage insurance (PMI) cost as compared to the ongoing FHA MIP cost
- Borrower(s) is not required to maintain reserves if buying a single-family property
- Income flexibility for California homeowners
California Home Possible Eligibility & Income Limits
Home Possible California mortgages are available to both first-time home buyers and borrowers who have previously owned a home but the borrower who owns and occupies the property cannot own any other residential properties. Additionally, borrowers seeking to refinance (seeking lower mortgage rates) an existing property may also be eligible for a Home Possible loan.
Home Possible income limits vary based on the location of the property. Contact your Home Point Financial Home Possible loan specialist for details on California income limits and property eligibility.
Interest Rates for California Home Possible Loans
The interest rate in California on Home Possible mortgages depends on many factors, including the borrower’s credit score and loan-to-value (LTV) ratio. As with any loan, it’s best to contact a mortgage professional to fully understand interest rates and costs related to a new home loan.
Apply for a Home Possible Loan in California
The Home Possible mortgage professionals are here to help with any questions that you may have about Home Possible or any other type of home mortgage program. Contact Home Point Financial today to learn more about California's Home Possible mortgage program.