Industry News

Home Possible mortgages now available to military personnel

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Freddie Mac will offer its "Home Possible" mortgages -- which give teachers, firefighters, law enforcement and healthcare workers 30 percent more buying power -- to 1.5 million members of the U.S. armed forces. Designed to foster home ownership in underserved communities and among at or below median-income families, Home Possible mortgages are available as 15-, 20-, 30- and 40-year fixed-rate mortgages or as 7/1 or 10/1 adjustable-rate mortgages for 1-2 unit properties. They have zero or very low down payments, flexible credit requirements, and higher loan-to-value ratios. A temporary subsidy buy-down allows Home Possible mortgage holders to reduce their initial interest rate by up to 1.5 percent in the first year, increasing home-purchasing power by up to 30 percent. With a 3 percent down payment, a borrower earning $2,761 a month can use the temporary buy-down feature to boost buying power from $200,000 using a standard 97 percent loan-to-value-ratio mortgage to $260,400, Freddie M...