4501.3: Eligible and ineligible Home Possible® Mortgages (11/01/18)

(a) Eligible Mortgages

Home Possible® Mortgages eligible for purchase must be First Lien Mortgages that are fully amortizing and must be one of the following conventional Mortgage products:

Fixed rate Mortgages
7/1 or 10/1 ARMs if secured by a 1- to 4-unit property
5/5 or 5/1 ARMs if secured by a 1- to 4-unit property other than a Manufactured Home

Home Possible Mortgages, other than Mortgages secured by Manufactured Homes, must have an original maturity date not greater than 30 years.

Home Possible Mortgages secured by Manufactured Homes must have a maximum original maturity not greater than that specified in Section 5703.3(d).

Home Possible Mortgages may be one of the following provided the Mortgage meets the applicable requirements for that offering and this chapter:

Home Possible Mortgages with RHS Leveraged Seconds originated in accordance with Section 4205.2 and with a maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio of 95%
Construction Conversion and Renovation Mortgages originated in accordance with Chapter 4602
Super conforming Mortgages originated in accordance with Chapter 4603

(b) Ineligible Mortgages

Mortgages with the following characteristics are not eligible for purchase as Home Possible Mortgages:

Affordable Merit Rate® Mortgages
A-minus Mortgages
Seasoned Mortgages
Financed Permanent Buydown Mortgages
Seller-Owned Modified Mortgages and Seller-Owned Converted Mortgages
Mortgages with capitalized balances as described in Chapter 4403
FHA and VA Mortgages
Section 502 GRH Mortgages
Section 184 Native American Mortgages
Freddie Mac Relief Refinance MortgagesSM – Same Servicer, Relief Refinance Mortgages – Open Access, and Enhanced Relief RefinanceSM Mortgages
Freddie Mac HomeOneSM Mortgages