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Home Possible Income Limit 2024

Reviewed by: David Naimey

Approved by: Chad Turner


  • Helps low-income borrowers become homeowners with a 3% down payment.
  • Eligibility is based on income, capped at 80% of the area’s median income.
  • First-time buyers need a minimum credit score of 660 and must complete a homebuyer education course.
  • Borrowers must live in the home, but co-signers are allowed, and multi-unit property purchases are permitted.

The Home Possible® Program from Freddie Mac helps low-income borrowers achieve homeownership on favorable terms. The program comes with a low down payment, which helps first-time home buyers climb on the property ladder. 

The income limit set by Freddie Mac depends on the borrowers’ zip code and should be up to 80% of the area’s median income. There is a helpful guide from Freddie Mac that helps you determine the income eligibility criteria across all United States zip codes and counties. 

You can apply for a Home Possible® loan through housing finance agencies.

Home Possible® Program Eligibility Criteria

Income eligibility

The income requirements for a Home Possible® loan depend on the area’s median income (AMI) by state, as mentioned above. 

For example, in an area where the median income is $85,000, a borrower must have a combined income at the most of $68,000 (85,000 x 80%) to be eligible for a Home Possible® loan. The program funds homes for people who would normally struggle to get a conventional loan and achieve homeownership. 

Low down payment

To help borrowers even further, the program comes with a low down payment of 3%. Again, this helps first-time home buyers buy a home. Most housing loans require down payments of at least 10%, which can be a severe burden on people hoping to purchase their first home. 

One of the borrowers must reside in the home

One of the Home Possible® mortgage requirements is that the borrower or one of the borrowers, in the case of multiple borrowers, is a home occupant. This means the home can’t be rented. 

However, it does help the process if there is a co-signer on the loan who will not be residing. Some people with lower credit scores have the option to apply for a Home Possible® loan with the backing of a co-signer. They will be occupying the home but the co-signer can help them improve their overall credit score. 

A Home Possible® loan may also be used if you plan on buying more than one unit and will reside in one of them and rent the rest. 

First-time home buyers

The Freddie Mac Home Possible® Program has been designed for first-time buyers to help them make true their dream of owning a home. Freddie Mac considers a first-time buyer to be someone who hasn’t owned a home for the last three years. 

Credit score requirements

Freddie Mac lenders require borrowers to have a minimum credit score of at least 660. This level is higher than other mortgage programs but not as high as some conventional home loans require. 

Home loan limits

For the year 2023, the home loan limit stands between $726,200 and $1,089,300, depending on the zip code. The loan amount you are applying for must not exceed this limit.

Loan insurance

With Home Possible®, the Private Mortgage Insurance (PMI) is on the lower end of the scale and could be as low as 0.5%, with a higher down payment and a good credit score. Remember that if you can make a 20% down payment, you can cancel mortgage insurance (PMI) and your monthly loan payments are lower. 

There is no insurance fee with a Home Possible® mortgage. 

Responsible homeownership

To help borrowers understand their financial potential and plan their monthly budgets, Freddie Mac has made it compulsory for applicants to complete a homebuyer education course. This helps prospective homeowners understand their responsibilities and be financially reliable once they get a mortgage. Such courses help homebuyers prioritize their expenses and repay their debts in a rational and affordable way. 

The Freddie Mac Home Possible® Program

The Freddie Mac Home Possible® Program is geared towards low- to moderate-income borrowers and first-time homebuyers who would like to enter the property market on friendly and affordable terms, with a low monthly mortgage payment and closing costs. 

This loan program requires a low down payment and is focused on people who have below-average incomes. Home Possible® income limits are calculated on a county basis. 

The Home Possible® mortgage program offers lower PMI rates and no insurance fees and requires at least one borrower to occupy the home after closing. 

Contact us today and start your home-buying journey!

Frequently Asked Questions

The program is generally available for primary residences only and may include certain types of properties like single-family homes, condominiums, and planned unit developments. There are no location limits for home properties in the program.

Eligibility requirements for Home Possible® mortgages typically include income, which must be at or below the area median income for most properties, credit score, and other standard mortgage qualifications. 

The Freddie Mac’s Home Possible® loans are a great mortgage option for low-income borrowers. Key benefits for the homebuyer include lower down payments (as low as 3%), reduced mortgage insurance premiums, and flexibility in using income from other household members or renters to qualify. Another benefit is that the first-time homebuyer needs to complete a homeownership education course, which can have a lasting effect on their financial situation in the long term.

No cash-out refinance is allowed for borrowers who occupy the property. If you want to refinance your current Freddie Mac loan, check if you qualify for the lending requirements for the bank’s specific refinance loan, called Refi Possible®. This comes with better rates and can offer low monthly installments. Contact us to learn more about refinancing your mortgage loan.


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