The Home Possible program, a great way for borrowers to find the best loan for their needs, has recently seen several changes in its Loan-to-Value (LTV) requirements. It’s important for borrowers to stay up-to-date on the latest LTV requirements to ensure that they are getting the best deal possible and to ensure that they’re aware of any potential changes.
The Home Possible program allows borrowers to purchase a home or refinance their existing mortgage with a low down payment option, and it’s a great way to help more people become homeowners and increase access to homeownership. The program is aimed at helping borrowers who may not have the resources necessary to make a higher down payment and who may struggle to qualify for a traditional mortgage loan. Borrowers can benefit from lower closing costs, lower monthly payments, and more manageable loan terms.
However, it is important for borrowers to know the latest Loan-to-Value (LTV) requirements for the Home Possible program in order to get the best deal possible. The LTV is the ratio of a borrower’s loan amount to the value of the property. The maximum LTV varies depending on the type of loan being sought and the borrower’s credit score. Borrowers should be aware that the maximum LTV has changed for the Home Possible program.
For example, most borrowers who seek a 30-year fixed rate mortgage loan under the Home Possible program can now borrow up to 97% of the total loan amount. This is an increase from the previous limit of 95%. This means that a borrower with a credit score of 680 or higher can now borrow up to 97% of the purchase price of the home in order to meet the requirements of the Home Possible program. A borrower with a lower credit score may still qualify for a Home Possible loan, but the maximum LTV may be lower.
It is important for borrowers to stay up-to-date on the latest LTV requirements for the Home Possible program in order to get the best deal possible and to ensure that they are aware of any potential changes. This will allow borrowers to make an informed decision when considering the Home Possible program for their mortgage loan. Additionally, Mortgage Depot provides information regarding the latest mortgage requirements and more to give borrowers the best chance of finding the right loan for their needs.
The Home Possible Program is an initiative of the Federal Home Loan Mortgage Corporation that allows borrowers to purchase a home or refinance an existing mortgage with a low down payment option. The program is aimed at helping borrowers who may not have the resources necessary to make a higher down payment and who may struggle to qualify for a traditional mortgage loan. The Loan-to-Value (LTV) ratio is a critical factor in determining if a borrower qualifies for a Home Possible loan. LTV is the ratio of a borrower’s loan amount to the value of the property.
In response to the changing mortgage market, Freddie Mac recently announced changes to the LTV requirements for the Home Possible program. The new LTV requirements allow for a higher maximum loan amount than the previous requirements. For example, most borrowers who seek a 30-year fixed rate mortgage loan under the Home Possible program can now borrow up to 97% of the total loan amount. This is an increase from the previous limit of 95%. A borrower with a credit score of 680 or higher can now borrow up to 97% of the purchase price of the home in order to meet the requirements of the Home Possible program. Note that borrowers with lower credit scores may still qualify for a Home Possible loan, but the maximum LTV may be lower than 97%.
It is important for borrowers to keep their eyes peeled for updates on current LTV requirements, as changes may occur due to changing market conditions. Such changes provide an opportunity to get a better deal on the loan, and borrowers should be aware of them. Borrowers should also remember that Mortgage Depot offers resources that provide the latest information on mortgage requirements. This makes it easier for borrowers to stay informed of the latest changes related to the Home Possible program. With the right information, borrowers can ensure that the loan product they choose is the best one for their individual needs and budget.
This article was contributed on Nov 21, 2023
