If you’ve been dreaming about owning a home but worry the down payment is out of reach, there’s good news. The Freddie Mac Home Possible® mortgage program could help you buy with as little as 3% down — and even use gifts, grants, or sweat equity to cover most upfront costs.

Here’s what makes Home Possible so powerful for first-time buyers and anyone looking for a low-down-payment option.

1. Down Payments as Low as 3%

Unlike many conventional loans that require 5% or more down, Home Possible allows you to buy a home with just 3% down. That means if you’re buying a $300,000 home, you could get started with only $9,000 down — instead of $15,000 or more.

2. Flexible Sources for Your Down Payment

Your entire down payment can come from gifts, grants, or even sweat equity (the value of labor you put into the home). There’s no minimum required from your own funds — which is a huge relief if you’re saving slowly or getting help from family.

3. Lower Monthly Costs

Home Possible loans typically mean:

• Lower Private Mortgage Insurance (PMI) premiums compared to standard conventional loans

• Access to competitive interest rates, which can help lower your monthly payment and save thousands over the life of the loan

4. Designed for Moderate-Income Buyers

You don’t have to be a first-time buyer to use Home Possible — but the program does focus on helping buyers with moderate incomes. Your income must be at or below 80% of the area median income (AMI) where you’re buying. (You can check your eligibility at https://sf.freddiemac.com.)

The Bottom Line

If saving for a big down payment has been holding you back, Home Possible could make owning a home faster and more affordable than you thought. With just 3% down, flexible funding options, and reduced monthly costs, it’s worth exploring.

A knowledgeable loan officer can help you check your eligibility and compare Home Possible to other programs so you can move forward with confidence.

Sources:
Freddie Mac — https://sf.freddiemac.com
Consumer Financial Protection Bureau — https://www.consumerfinance.gov
Federal Housing Finance Agency — https://www.fhfa.gov