Freddie Mac recently announced a key milestone: Its Home Possible mortgage origination program has exceeded $50 billion in home mortgages since its launch in 2014.
These mortgages were provided to 262,328 families across the U.S.
Home Possible assists low- to moderate-income homebuyers by offering a 3% down payment solution from a variety of funding sources to families that meet or exceed a rigorous assessment process.
“Home Possible is transforming the way we serve the growing number of lower-income borrowers who want to own a home,” says Danny Gardner, senior vice president, affordable lending and access to credit at Freddie Mac, in a release. “The powerful impact of sustainable homeownership on families is something we do not take for granted. It is fundamental to the mission of Freddie Mac to help people achieve the American dream of buying a home they can afford for the long term.”
Freddie Mac says it has been successful in educating and assisting an increased percentage of first-time homebuyers, diverse populations and Millennials in their quest to attain homeownership.
First-time homebuyers account for 79.3% of people benefitting from Home Possible.
Additionally, low down payment offerings like Home Possible are helping to increase the homeownership rate for lower income borrowers from its low of 48% during the second quarter of 2016 to 51% during the third quarter of 2018, according to data from the U.S. Census Bureau.
“Homeownership is critically important for families, whether they are first-time homeowners or purchasing a home they plan to live in through retirement. We believe the need and demand for affordable lending is only going to increase,” adds Gardner.