Allied Business Schools, Inc. Safe 1 HR-CE-Home Possible 18 Module 2

1. Module 2: Comparing Home Possible and
Home Possible Advantage Guidelines

2. Module 2: Comparing Home Possible and Home Possible
Advantage Guidelines
2.1 Home Possible Guidelines
 Qualifying Ratios
 Maximum LTV
 Property Eligibility
 Eligible Properties for the Home Possible Loan Program
 One- to four-unit primary residence
 Manufactured homes OK with certain restrictions
 No second homes
 No investment properties
 Loan Terms
 Home Possible Loan Terms
 5/1 ARM (does not include manufactured homes)
 7/1 ARM
 10/1 ARM

3. Module 2: Comparing Home Possible and Home Possible
Advantage Guidelines
2.1 Home Possible Guidelines
 Down Payment Source
 Home Possible Down Payment Requirements
 One-unit property: None
 Two to four-units: None if the LTV is ≤ 80
 Two to four-units: 3% or higher if the LTV is > 80 and ≤ 95
 Manufactured homes: None
 Cash Reserves
 Home Possible Reserve Requirements
 One-unit: None
 Two- to four-units: 2 months’ worth of mortgage payments

4. Module 2: Comparing Home Possible and Home Possible
Advantage Guidelines
2.2 Home Possible Advantage Guidelines
 Qualifying Ratios
 Maximum LTV
 Home Possible Advantage LTV Requirements
 Maximum LTV is 97 for one-unit properties
 Maximum Total Loan-to-Value (TLTV) is 105% when combined with secondary financing such
as Affordable Second mortgage, like a state or local down payment assistance program. A
Home Equity Line of Credit (HELOC) would not qualify as an acceptable second mortgage.
 Property Eligibility
 Home Possible Advantage Program Property Requirements
 One-unit properties only
 Must be primary residence
 Manufactured homes not allowed
 No second homes
 No investment properties

5. Module 2: Comparing Home Possible and Home Possible
Advantage Guidelines
2.2 Home Possible Advantage Guidelines
 Loan Terms
 Home Possible Advantage Loan Terms
 Fixed-rate mortgages (FRMs) only
 Mortgage term cannot exceed 30 years
 Down Payment Sources
 Cash Reserves