Freddie Mac Introduces Lower 95% LTV Home Possible Mortgage for 2-4 Unit Multi-Family Properties!

Pamela M. Marron • November 17, 2021

In their quest to make homes more affordable, Freddie Mac reduced the maximum loan to value (LTV) for multi-family units to 95%, a reduction of 10% down payment previously needed. Further, this financing will allow a total loan to value (TLTV) up to 105% with permitted secondary financing that is an Affordable Second. 

Have you considered showing 2-4 unit properties to younger and older prospective homebuyers to live in as a primary residence? If yes, you might want to check your market for the availability of these properties that just got more affordable to purchase.


There is an income cap for this Home Possible loan of 80% Area Median Income (AMI) which can be found on the
Freddie Mac Home Possible Income and Property Eligibility Tool. First-time homebuyers must complete a Homeownership course. The minimum credit score is noted as 620, and the Freddie Mac Loan Prospect Advisor must receive an approval.


If the homebuyer purchases the multi-family unit to owner-occupy one of the units, rental income of the other units can be used.
Click here for details.


This program is especially beneficial in areas where multi-family units are more plentiful. This could boost younger buyers looking for a first home and don’t mind having their home attached to other dwellings that can also produce rental income. To qualify for this loan, you must occupy one of the units. 


Multi-family units are often overlooked by families or are sold to investors. You may be surprised by the interest in multi-family dwellings by younger potential homebuyers and even retirees that want to be closer to neighbors.


Look into this updated
Freddie Mac Home Possible program that just made purchasing a 2-4 unit property more affordable!


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