HomeReady and Home Possible Loans in West Palm Beach, FL – What Are They?
HomeReady and Home Possible Loans are two of the most popular conventional loan programs in West Palm Beach, Florida. They offer a feature that improves an individual’s ability to qualify for a loan. Both programs are designed to make homeownership achievable for borrowers with low or moderate income and limited resources. Borrowers in West Palm Beach, FL, may have to choose between a HomeReady Loan and a Home Possible Loan, which is why it is important to understand the similarities and differences between the two.
Key Features of the West Palm Beach Home Ready Loan
The HomeReady Loan is offered by Fannie Mae. One of the key features of the West Palm Beach Home Ready Loan is that it permits borrowers to qualify for the loan with non-traditional sources of income. Borrowers may include income from a co-borrower (non-occupant) like a parent or rental income to help qualify for HomeReady. Moreover, borrowers with a credit score higher than 680 may qualify for better rates and pay reduced mortgage insurance fees.
Key Features of the West Palm Beach Home Possible Loan
The Home Possible Loan is available through Freddie Mac. Like the HomeReady Loan, this program also allows borrowers to use a co-borrower (non-occupant) and non-traditional source of income to help qualify for the mortgage. Rental income from boarders and income from units in a multi-family property (that you don’t occupy) can be incorporated.
Similarities between West Palm Beach HomeReady and West Palm Beach Home Possible Loan
Both HomeReady and Home Possible Loans are designed to make homeownership more accessible to low-to-moderate income borrowers. Both programs allow borrowers to purchase a single home house with a 3 percent down payment and require no minimum borrower contribution. This means that instead of using your own funds, you can use gifts or grants to pay for closing costs and down payment. This gives you the ability to buy a house without putting a lot of money out of pocket. Other similarities between West Palm Beach HomeReady and West Palm Beach Home Possible Loan include:
- Rental income can be included in the loan application
- A minimum credit score of 620 required
- Multi-family properties – ones with a maximum of four units – can be purchased with these loans
- Both repeat and first-time borrowers allowed
- Borrowers whose income doesn’t exceed 80 percent of the area median income for the home’s location may qualify
- Require at least 3 percent down payment
- Co-borrower (non-occupant) can help a borrower qualify for the home loan
- Require borrowers to complete homebuyer education
HomeReady and Home Possible Loans are provided by lenders, including local, national, and regional banks, credit unions, and mortgage brokers. Both of these programs have some similarities and differences. You should compare the eligibility guidelines and loan terms of both these loan programs to find the home loan that is right for you. If you need any kind of assistance, call Fourpath Mortgage at 954-507-7553.