0% Down Purchase is a down payment assistance program that allows borrowers to receive a 3% loan up to $15,000. Borrowers will have no required monthly payment on the second lien and the second lien does not accrue interest. The second lien is due in full as a balloon payment upon refinance of the 1st lien, a payoff or the final payment of the amortization schedule of the 1st lien.
• No FTHB requirements for 0% Down Purchase Home Possible®
• Homeownership education required when all borrowers are first-time homebuyers
• Very Low-Income Purchases (VLIP) for borrowers whose AMI is 50% or lower receive a credit of $2,500.
o Borrowers who receive this credit are only eligible for up to $12,500 down payment assistance
• Non-occupying co-borrowers are not permitted on a 0% Down Purchase - HomeOne® loan.
o Non-occupying co-borrowers are permitted up to 95% LTV on 0% Down Purchase - Home Possible® loans
• 30-year fixed primary purchases only 1 Unit single-family, PUDs, condos, No manufactured homes
• Down payment assistance can cover up to the lesser of 3% or $15,000 of the down payment
o Second lien is due in full as a balloon payment upon refinance or final payment of the mortgage, or a payoff
o No required monthly payment on the second lien
o Second lien does not accrue interest
• All Home Possible® or HomeOne® guidelines must be met, based on borrower eligibility
o LPA findings must be Accept
o Home Possible® or HomeOne® price caps will apply
• Minimum FICO
o 0% Down Purchase - Home Possible® = 620 FICO
o 0% Down Purchase - HomeOne® = 700 FICO
• Maximum DTI = determined by LPA findings
• Maximum LTV = 97%
• Maximum TLTV = 100%
• Minimum LTV =
o 0% Down Purchase Home Possible® = 95%
o 0% Down Purchase HomeOne® = 95.01%
• Maximum Lock Period = 90 days
• Temporary Rate Buydowns eligible
• Maximum loan amount = conforming loan limits (no High Balance)
• For 0% Down Purchase Home Possible®: only eligible for borrowers with income at or below 80% Area Median Income Freddie Mac Freddie Mac Home Possible® Income & Property Eligibility Tool
• No AMI restrictions on 0% Down Purchase HomeOne® when at least one occupying borrower on the loan is a first-time homebuyer.