Home Possible Loan

[Sterling Pompey]

Hi All, 

Has anyone heard of the "Home Possible Loan" from Freddie Mac? What are some Pros and Cons of using this method as this is the first time I'm hearing about it. I've never heard of it mentioned on the BP Podcast but one lender suggested it to me today as a way to scale a multi-family portfolio (buy first multi-family with the first time home buyer's loan FHA, then buy the second multi family with the Home Possible loan Freddie Mac.)  

For context, I'm a single 27 y/o working for an Industrial REIT as an Asset Manager and am blessed to make decent money for my age. No kids, living at home with my parents to pay down my car and student loans. These properties that I'm planning to purchase, will be my first two in the next coming years. My original plan was to buy a single family/condo live in that for a year or two while I fix it up then rent it out and move on to a multi-family next. This conversation was prompted when I asked the lender (who explicitly works with investors) "what the biggest mistake is that new investors make?" The lender said, you just made it with that plan.

The lender (been a lender for 25 yrs) said the investors he's seen have the most success utilize the strategy I mentioned in the beginning of this post. The lender said I'd be able to utilize the down payment characteristic of both loans to essentially get into the real estate game and be on a good track to start scaling. Obviously, the lender mentioned all the good sides of the loan so I wanted to do some due diligence as this is the first I'm hearing of this. Does any one have any experience with this loan product? 

Thanks in advance for any and all insight.