 TITLE: What Is a Freddie Mac Home Possible Loan? CONTENT: Freddie Mac is a nickname for the Federal Home Loan Mortgage Corporation. In addition to buying mortgages from lenders like banks and credit unions and selling the debt on the secondary mortgage market, Freddie Mac and its sister agency Fannie Mae help set standard requirements for conventional mortgages. For homebuyers and borrowers who might have a tough time meeting those requirements, Freddie Mac and Fannie Mae also promote special programs to encourage homeownership for folks like first-time homebuyers and borrowers with low to moderate income.\nHome Possible is one of these programs. Requirements for the Home Possible loan are designed to help homeowners who might not otherwise qualify for a mortgage. Here are a few highlights :\n*   Down payments start at 3%.\n*   Down payment money can come from family, employer assistance programs, secondary financing or \"sweat equity.\"\n*   Family members who won't live at the home can be included as co-borrowers for single-unit properties.\n*   Mortgage insurance requirements are reduced and insurance on the loan can be canceled after the loan balance drops below 80% of the home's appraised value.\n*   Credit fees are capped and are lower than standard fees for loans with an 80% loan-to-value ratio or higher.\n*   Borrowers may be able to secure a loan even if they don't have a credit score, although alternative requirements may apply. END