Florida Home Possible® Program: Buy a Home with Just 3% Down

Freddie Mac’s Home Possible® program is a conventional mortgage option aimed at low- to moderate-income homebuyers.

In this post, we’ll outline how the program works, its eligibility requirements, and key features such as the 3% minimum down payment.

Check Your Florida Home Possible 3%-Down Mortgage Eligibility

We’ll also explain how the program applies in Florida and how it compares to similar low-down-payment options.

What Is the Florida Home Possible Program?

The Florida Home Possible program is Freddie Mac’s affordable conventional mortgage option for low- to moderate-income homebuyers in the state.

It allows qualified borrowers to purchase a home with as little as 3% down, using flexible funding sources like gifts, grants, or secondary financing.

Eligibility is based on income limits—generally capped at 80% of the area median income (AMI) for the property location.

Mortgage insurance is required but can be canceled once you reach 20% equity, unlike FHA loans.

This program is designed to make homeownership more accessible across Florida while offering long-term cost savings compared to other low down payment options.

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Benefits of the Florida Home Possible Program

The Florida Home Possible program offers several advantages that can make purchasing a home more affordable and attainable for eligible buyers.

• Low Down Payment – Buy a home with just 3% down, making it easier to qualify without years of saving.

• Flexible Funding Sources – Use gifts, grants, employer assistance, or secondary financing toward your down payment and closing costs.

• Lower Long-Term Costs – Mortgage insurance can be canceled once you reach 20% equity, reducing your monthly payment over time.

• Wide Property Eligibility – Available for single-family homes, condos, townhomes, and some manufactured homes in Florida.

• Support for Lower Incomes – Designed for buyers earning 80% or less of the area median income, with potential extra assistance for very low-income borrowers.

These benefits make the program a strong option for Florida residents who want a conventional loan with lower upfront costs and long-term savings potential.

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Requirements for the Florida Home Possible Program

To qualify for the Florida Home Possible program, borrowers must meet certain eligibility criteria set by Freddie Mac.

• Income Limit – Household income must be at or below 80% of the area median income (AMI) for the property location.

• Minimum Down Payment – At least 3% of the purchase price must be contributed toward the down payment.

• Credit Score – Most lenders require a minimum credit score of 620, though some may set higher standards.

• Occupancy – The home must be the borrower’s primary residence; investment and second homes are not eligible.

• Homeownership Education – If all borrowers are first-time buyers, at least one must complete an approved homebuyer education course, such as Freddie Mac’s CreditSmart® Homebuyer U.

Meeting these requirements ensures that borrowers can take advantage of the program’s low down payment and flexible terms while aligning with Freddie Mac’s affordability goals.

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Florida Home Possible 2025 Income Limits

Income limits are a key eligibility factor for the Florida Home Possible program. Borrowers must have a qualifying income that does not exceed 80% of the Area Median Income (AMI) for the property’s location.

These limits vary by county and are updated annually, ensuring they reflect local housing market conditions. Your lender will use Freddie Mac’s official income lookup tool or published charts to determine if you qualify.

Below is the current income limit chart for Florida Home Possible loans.

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Who Is the Florida Home Possible Program For?

The Florida Home Possible program is intended to support specific groups of buyers who meet its eligibility standards. While it is a Freddie Mac product, Fannie Mae’s HomeReady® program offers similar guidelines and serves a comparable audience. Lenders can review both options with applicants to determine which fits their circumstances.

Groups who may qualify include:

• Low-Wage Earners – Applicants with qualifying income at or below 80% of the Area Median Income (AMI) for the property location.

• First-Time Homebuyers – Defined by Freddie Mac as those who have not owned a residential property in the past three years.

• Primary Residence Buyers – Individuals purchasing a home they will occupy as their main residence in Florida.

This focus ensures the program is directed toward buyers with moderate or lower incomes who are purchasing homes for their own use.

Check Your Florida Home Possible 3%-Down Mortgage Eligibility

Pros of the Florida Home Possible Program

• Low Down Payment – Requires only 3% down, which can make homeownership more attainable for eligible buyers.

• Multiple Funding Sources Allowed – Down payment and closing costs can come from gifts, grants, employer assistance, or secondary financing.

• Cancellable Mortgage Insurance – Private mortgage insurance can be removed once you reach 20% equity.

• Broad Property Eligibility – Applies to single-family homes, condos, townhomes, and certain manufactured homes.

• Supports Lower-Income Buyers – Income limits are designed to make the program available to households earning 80% or less of the area median income.

• Check Your Florida Home Possible 3%-Down Mortgage Eligibility

Cons of the Florida Home Possible Program

• Income Restrictions – Borrowers must meet the 80% AMI income limit, which may exclude some applicants.

• Primary Residence Only – Not available for second homes or investment properties.

• Mortgage Insurance Required – PMI is required for higher LTV loans until 20% equity is reached.

• Credit Standards Apply – Minimum credit score requirements (typically 620 or higher) may be a barrier for some buyers.

• Education Requirement – First-time buyers must complete an approved homeownership education course.

• Check Your Florida Home Possible 3%-Down Mortgage Eligibility

Alternative Government Loan Programs

While the Florida Home Possible program is a conventional loan backed by Freddie Mac, there are several government-backed mortgage options that may be a better fit depending on a buyer’s situation. These include FHA, VA, and USDA loans, each with its own requirements and benefits.

• FHA Loans
  – Insured by the Federal Housing Administration, FHA loans allow down payments as low as 3.5% and have more flexible credit requirements. Mortgage insurance is required for the life of the loan unless refinanced into another type of mortgage.

• VA Loans
  – Guaranteed by the U.S. Department of Veterans Affairs, VA loans are available to eligible veterans, active-duty service members, and certain surviving spouses. They offer no down payment, no mortgage insurance, and competitive interest rates.

• USDA Loans
  – Backed by the U.S. Department of Agriculture, USDA loans are designed for eligible buyers in rural and some suburban areas. They offer no down payment and reduced mortgage insurance costs but have geographic and income limits.

These government-backed programs can serve as alternatives for buyers who do not meet the eligibility requirements for the Florida Home Possible program or who may benefit more from the unique features of these loans.

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Bottom Line

The Florida Home Possible program is a conventional mortgage option from Freddie Mac designed for low- to moderate-income homebuyers.

It provides a path to homeownership with a low 3% minimum down payment, flexible funding sources, and cancellable mortgage insurance.

While it has income, occupancy, and credit requirements, it can be a competitive choice for eligible buyers—particularly those comparing it with FHA, VA, or USDA loans.

Check Your Florida Home Possible 3%-Down Mortgage Eligibility