Freddie Mac Single-Family Seller/Servicer Guide 4501.5 — Underwriting requirements for Home Possible® Mortgages

Freddie Mac Single-Family Seller/Servicer Guide 4501.5 — Underwriting requirements for Home Possible® Mortgages

Effective 2026-04-12 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Loan Product Advisor® ■ Manually Underwritten Mortgages A Home Possible® Mortgage may be submitted to Loan Product Advisor or may be a Manually Underwritten Mortgage, except as otherwise stated below. (a) Loan Product Advisor The Borrower’s credit reputation is acceptable if the Mortgage is submitted to Loan Product Advisor in accordance with Chapter 5101 and receives a Risk Class of Accept. (b) Manually Underwritten Mortgages Manually Underwritten Mortgages must meet the requirements of this chapter and Topics 5100 through 5500. Each Borrower individually, and all Borrowers collectively, must have an acceptable credit reputation as described in Topics 5100 and 5200. An individual Borrower with insufficient credit history for whom the Seller cannot document a credit reputation because the Borrower does not have sufficient credit history, is considered to have an acceptable credit reputation provided that: ■ The Borrower has no evidence of any derogatory credit, such as a lien, judgment or collection, paid or unpaid, reflected on the credit report or elsewhere in the Mortgage file, and ■ At least one other Borrower whose income and assets are used for qualification has an acceptable credit reputation as described in Topics 5100 and 5200 For Manually Underwritten Mortgages, the minimum Indicator Scores are: Property/Mortgage type Minimum Indicator Score 1-unit fixed-rate Mortgages that are purchase transactions (other than Manufactured Homes) 660 1-unit ARMs 1-unit Mortgages that are “no cash-out” refinance transactions 680 2- to 4-unit properties 700 Manufactured Homes 680 Exception: When none of the Borrowers has a usable Credit Score, a minimum Indicator Score is not required if: ■ The requirements of Chapter 5202 are met; ■ The loan-to-value (LTV), total LTV (TLTV) and Home Equity Line of Credit (HELOC) TLTV ratios are less than or equal to 95%; ■ The Mortgage is not secured by a Manufactured Home; and ■ Each Borrower’s credit history for the most recent 24 months shows: ❑ No unpaid judgments, tax liens or collections ❑ No payments 60 days or more past due ❑ No more than two payments 30 days past due ❑ No housing payments past due

Source: Freddie Mac Single-Family Seller/Servicer Guide 4501.5 — Underwriting requirements for Home Possible® Mortgages · source URL · snapshot 4c94f67729042dd6