Home Possible Loan questions

[Daniel Burant]

Hello everyone. Thank you for taking the time to read this, and give your valued advice.

I’m looking to buy my first multi family unit, I’ve been looking into the Freddie Mac home possible loan program, and working with BMO Harris bank. One of their loan advisors ran all my information to see what kind of loan programs I may qualify for, and home possible was one of them(according to the advisor). Here lies the issue, after hearing that I qualify, and getting a pre qualification certificate from the bank for this loan, I logged onto Freddie macs webpage and used their home possible average median income map, and noticed that all the areas that I’m looking to buy in are capped out at 77k median income per year. I told the loan advisor that me and my wife’s income combined is around 90k per year, and my income on its own is 55k per year. But he still said that I would qualify for this type of loan.  I’m the only person putting my name on mortgage, so I’m wondering if this loan program only takes my income into consideration, and not my wife’s(household income)? Otherwise it seems that we would be over the income limit.

Secondly, with Home Possible, how long would this home have to be my primary residence before I could legally move out, and potentially take out a conventional loan on another property? 

Thank you!

[Arnell Brady III]

@Daniel Burant Great questions, and I like that you did your own research. A lot of times some lenders not very well versed on specific products will miss the fine details. With regards to home possible, they use borrower income and not household. Some programs will use household and then your scenario would not fit. 

Home possible also does not have recapture clause, minimizing the amount of time you need to stay in the home. There are some specifics on that, but generally speaking you can purchase again in 6 months-1 year. Great program choice!