Federal · Subsidized loan

Freddie Mac Home Possible

3% down + flexible funding

3% down with flexible funding sources including gifts and employer assistance.

Freddie Mac Home Possible matches HomeReady's 3% down requirement but adds its own twist: it accepts non-traditional credit histories, making it accessible to borrowers without established credit scores. If you've been paying rent and utilities on time but don't have credit cards or loans in your name, Home Possible can work with that history.

The entire 3% down payment can come from gifts, grants, Affordable Seconds (government-backed second mortgages), or employer assistance programs. PMI is reduced compared to standard conventional loans and cancels automatically when you reach 20% equity — unlike FHA's permanent mortgage insurance.

Home Possible allows co-borrowers who don't live in the property, which is useful when a family member wants to help you qualify. It works on 1-4 unit properties for owner-occupants ready to house-hack their way into real estate.

Amount3% down + flexible funding
TypeSubsidized loan
Available inAll 50 states
First-time buyer requiredNo
Minimum credit score620
Multi-unit eligibleYes — 1-4 units

House-hack eligible

This program can be used on 1-4 unit properties. Live in one unit, rent the others.

Programs that pair with this

Florida Hometown Heroes $35,000
Florida · Deferred 0% loan
TDHCA My First Texas Home Up to 5% of loan amount
Texas · DPA + below-market rate
California Dream For All $150,000
California · Shared appreciation
SONYMA DPAL $15,000
New York State · Forgivable loan
PHFA K-FIT (Forgivable in Ten Years) 5% of price — no cap. $20K on a $400K home, fully forgiven
Pennsylvania · Forgivable loan
FHA Loan Saves ~$33,000 on a $200K home vs 20% down
Federal · Subsidized loan

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