Freddie Mac Home Possible® Mortgage in Washington State

Freddie Mac Home Possible® Mortgage in Washington State

The Home Possible® mortgage is a low-down-payment conventional loan program designed to help buyers achieve homeownership with more flexibility and lower upfront costs.

Backed by Freddie Mac, Home Possible allows qualified homebuyers in Washington State to purchase a primary residence with as little as 3% down, while offering reduced mortgage insurance and competitive interest rates.

This program is especially popular with first-time homebuyers in higher-cost areas like Seattle, King County, Pierce County, and Snohomish County, where saving for a large down payment can be challenging.

Update: This article reflects current Home Possible mortgage guidelines for 2026. Program details, income limits, and loan limits are subject to change and should always be verified.

What Is the Home Possible Mortgage?

Home Possible is a conventional mortgage program created by Freddie Mac to support low- to moderate-income borrowers who have strong credit habits but limited down payment savings.

Because it’s a conventional loan:

• Mortgage insurance can usually be canceled
• It often competes well against FHA in the long run
• It’s commonly accepted in competitive purchase markets
• Also available for refinancing

Key Benefits of Home Possible

✔ Low Down Payment

• As little as 3% down for qualified buyers

✔ Reduced Mortgage Insurance

• Lower monthly mortgage insurance compared to many low-down-payment options

✔ Mortgage Insurance Can Be Canceled

• Unlike FHA, PMI may be removed once equity requirements are met

✔ Flexible Sources of Funds

• Gift funds allowed
• Eligible down payment assistance programs may be layered

✔ Competitive Rates

• Often comparable to standard conventional financing

Who Is a Good Fit for Home Possible?

Home Possible may be a strong option if you:

• Are a first-time homebuyer (or have not owned in the past 3 years). NOTE: You do NOT have to be a first-time homebuyer to use this program.
• Have limited down payment savings
• Earn moderate income for your county
• Are purchasing a primary residence
• Prefer a conventional loan over FHA

This program works well for buyers purchasing single-family homes, condos, or townhomes that meet conventional guidelines.

Home Possible Income Limits in Washington State

Home Possible does include income limits, which are based on:

• County
• Household size
• Area median income (AMI)

Income limits are often higher in Washington’s higher-cost counties, making the program accessible to more buyers than people expect.

📌 Income limits change annually and must be verified at the time of application.

Home Possible vs FHA Loans

For many buyers, Home Possible offers lower long-term costs than FHA — especially if you plan to stay in the home.

Homebuyer Education Requirement

Home Possible typically requires at least one borrower to complete an approved homebuyer education course.

This course:

• Can often be completed online
• Helps buyers understand the process
• Builds confidence when making offers

Can Home Possible Be Combined With Down Payment Assistance?

Often, yes.

Home Possible may be layered with:

• Eligible Washington State down payment assistance programs
• Approved local or city assistance
• Gift funds from family members

Each assistance program has its own rules, so coordination matters.

Frequently Asked Questions About Home Possible

Is Home Possible only for first-time buyers?
No. Repeat buyers may qualify if income and occupancy requirements are met.

Is Home Possible the same as HomeReady?
They are similar but not identical. Home Possible is backed by Freddie Mac, while HomeReady is backed by Fannie Mae. Guidelines, income calculations, and mortgage insurance pricing can differ.

Can I use Home Possible for investment property?
No. Home Possible is for primary residences only.

Does Home Possible work for condos?
Yes, provided the condo meets conventional eligibility requirements.

How Home Possible Fits Into Washington Mortgage Programs

Home Possible is one of several mortgage programs available to Washington homebuyers, alongside:

• HomeReady®
• FHA loans
• VA loans
• USDA rural loans
• Jumbo and non-conforming financing

Choosing the right program depends on your credit profile, income, down payment, property type, and long-term goals.

👉 View mortgage programs available in Washington State

Is Home Possible Right for You?

Home Possible can be a powerful option — but it’s not the best fit for everyone.

I help Washington homebuyers compare Home Possible, HomeReady, FHA, VA, USDA, and down payment assistance strategies to determine the most cost-effective and realistic path to homeownership.

👉 If you’re buying in Washington State and want help comparing options, let’s take a closer look together.