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Offered by: Scott and Lora Nordby, Berkshire Hathaway HomeServices Innovative Real Estate

With as little as 3% down payment required, Freddie Mac’s Home Possible Mortgage loans are ideal for low to moderate-income borrowers with few savings, first-time homebuyers, borrowers with shallow credit histories, or retirees on a limited budget.

The benefits to borrowers are more flexible sources of funds for the down payment that can include gifts, grants, employer assistance, secondary borrowing, the borrower’s money, and other approved sources. Because the down payment is lower than the benchmark 20% down, you’ll pay private mortgage insurance. This protects the lender should you default, and the cost is based on your loan-to-value ratio and credit scores. Expect to pay $40 to $80 per month for every $100,000 you borrow. However, Home Possible mortgages have reduced mortgage insurance for loan-to-value ratios greater than 90 percent.

Other benefits include flexible property options, including condos and 1-4 unit homes, caps on credit fees, mortgage flexibility including 15-to 30-year fixed-rate loans and some adjustable-rate products, income flexibility and refinance options.

Required credit scores depend on the type of loan product you want and whether or not you’re buying a single unit or up to four units in the same building, but you should have a credit score of at least a minimum of 660 to 680 for single occupancy.

If you’re hesitant about getting into a low-down-payment loan, don’t be. These loans are only available through your lender if they meet Freddie Mac’s underwriting standards. Freddie Mac wants you to build wealth and security through homeownership.

If you’re considering buying or selling a home, call us at 303-905-8850. We’ll make sure you talk with someone who is knowledgeable about real estate and your neighborhood so you can make the decisions that are best for your family.