# Home Possible

> Home Possible is Freddie Mac’s conventional mortgage for buyers earning up to a set share of area median income, with a very small down payment.

URL: https://mail.mortgage-math-us.com/glossary/home-possible/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**Home Possible** is Freddie Mac’s conventional mortgage for low- and moderate-income borrowers: total qualifying income can’t exceed 80% of the area median income, and a fixed-rate loan on a one-unit home can reach 97% loan-to-value — a 3% down payment. It is for primary residences only.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Income limit (share of AMI) | 80% | [Freddie Mac Home Possible fact sheet](https://sf.freddiemac.com/docs/pdf/fact-sheet/home_possible_factsheet.pdf) | Feb 1, 2026 |
| Maximum LTV, one-unit fixed-rate loan | 97% | [Freddie Mac Home Possible fact sheet](https://sf.freddiemac.com/docs/pdf/fact-sheet/home_possible_factsheet.pdf) | Feb 1, 2026 |
| Maximum total LTV with an Affordable Second | 105% | [Freddie Mac Home Possible fact sheet](https://sf.freddiemac.com/docs/pdf/fact-sheet/home_possible_factsheet.pdf) | Feb 1, 2026 |

## Where the down payment can come from

Freddie Mac accepts gifts, grants, cash on hand, employer housing assistance and, in some cases, sweat equity. An Affordable Second — a second loan from an eligible source such as a housing agency — can push the total loan-to-value up to 105%, which can cover closing costs as well as the down payment. If all occupying borrowers are [first-time homebuyers](https://mail.mortgage-math-us.com/glossary/first-time-homebuyer/), at least one must complete homeownership education before closing.

> **Worked example: A $280,000 home**
>
> At 97% LTV the first mortgage is $271,600 and the down payment $8,400. Within the 105% total cap, an Affordable Second could add up to $22,400.

## Home Possible vs HomeReady

[HomeReady](https://mail.mortgage-math-us.com/glossary/homeready/) is Fannie Mae’s counterpart, with the same 80% income cap; a lender that sells loans to both companies can quote you either. Both carry [private mortgage insurance](https://mail.mortgage-math-us.com/glossary/private-mortgage-insurance/) below 20% down. See the [first-time buyer programs guide](https://mail.mortgage-math-us.com/first-time-buyers/programs/).

## Related terms

- [Down-payment assistance](https://mail.mortgage-math-us.com/glossary/down-payment-assistance/)

## Sources

- [Freddie Mac Home Possible fact sheet](https://sf.freddiemac.com/docs/pdf/fact-sheet/home_possible_factsheet.pdf) — Freddie Mac Home Possible maximum LTV, one-unit fixed-rate loan; Freddie Mac Home Possible maximum TLTV with Affordable Seconds; Freddie Mac Home Possible income limit (share of area median income) (Feb 1, 2026)
- [Fannie Mae Selling Guide B5-6-01](https://selling-guide.fanniemae.com/sel/b5-6-01/homeready-mortgage-loan-and-borrower-eligibility) — Fannie Mae HomeReady income limit (share of area median income) (Jun 4, 2025)
- [Freddie Mac: Home Possible fact sheet](https://sf.freddiemac.com/docs/pdf/fact-sheet/home_possible_factsheet.pdf)

_General information, not financial advice._