The Freddie Mac Home Possible loan program is designed for qualified low- and moderate-income borrowers. Through Home Possible loans, Illinois 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 borrower contribution
- Ability to include rental income from boarders and other units in multi-unit properties to qualify
- Potentially reduced interest rate for borrowers with low incomes or for properties in under-served areas
- No upfront FHA mortgage insurance premium (MIP) and potentially lower ongoing private mortgage insurance (PMI) cost as compared to the FHA cost
- Borrower is not required to maintain reserves if buying a single-family property
- Income flexibility for Illinois homeowners
Illinois Home Possible Eligibility and Income Limits
Home Possible 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 Illinois income limits and property eligibility.
Interest Rates for Illinois Home Possible Loans
The interest rate in Illinois 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 Illinois
Home Point Financial is here to help with any questions that you may have about Home Possible or any other type of home mortgage program. Contact us today.