Freddie Mac Home Possible®: 3% Down Mortgage for Kansas City

For many families in Kansas City and Overland Park, the biggest hurdle to homeownership isn’t the monthly payment—it’s the upfront cash. The Freddie Mac Home Possible® program is a specialized conventional loan designed to solve this. It allows for a low 3% down payment and offers more flexible qualifying terms than a standard mortgage.

What is the Home Possible® Mortgage?

Home Possible is an affordable lending solution aimed at low-to-moderate-income borrowers. Unlike a standard conventional loan that might require 5% to 20% down, Home Possible gets you into a home with just 3% down. It is a powerful alternative to FHA loans because it often features lower monthly costs and a path to cancel mortgage insurance entirely.

Key Benefits for 2026 Homebuyers

• Reduced Mortgage Insurance (PMI): Home Possible comes with discounted PMI rates. More importantly, unlike FHA insurance, you can cancel your PMI once you reach 20% equity in your home.
• Flexible Down Payment Sources: Your 3% down doesn’t have to come solely from your savings. You can use family gifts, employer-assistance programs, or community grants.
• Boarder Income Allowed: If you have a roommate who has lived with you for at least 12 months, you can sometimes use that rental income to help you qualify.
• No First-Time Buyer Requirement: Unlike some 3% down programs, you do not need to be a first-time homebuyer to use Home Possible.

Am I Eligible for Home Possible in Kansas City?

To qualify in 2026, you must meet specific income and credit criteria. Because this is a conventional product, it follows current mortgage rate trends closely but offers “Prime” pricing for those who meet the income caps.

1. Income Limits (AMI)

Your total qualifying income must be at or below 80% of the Area Median Income (AMI) for the census tract where the home is located.
Note: There are no income limits if the property is located in a “Low-Income” census tract.

2. Credit Score Requirements

While guidelines vary, a 660 minimum credit score is typically required for Home Possible. If your score is between 620-650, we may recommend exploring the FHA vs. Conventional comparison, as FHA is more forgiving of lower scores.

3. Homebuyer Education

If all occupying borrowers are first-time homebuyers, at least one borrower must complete a qualifying homeownership education course, such as Freddie Mac’s free CreditSmart® Homebuyer U, before closing.

Home Possible vs. FHA Loan (2026 Comparison)

How to Get Started

If you are looking at homes in the Overland Park area or anywhere in the KC metro, the first step is to check the AMI limits for your target neighborhood. Our team can run an eligibility report for any address you are considering.

START YOUR PRE-APPROVAL & CHECK AMI LIMITS