Fannie Mae’s Home Ready and Freddie Mac’s Home Possible Loan in Miramar, FL
Fannie Mae and Freddie Mac are on a mission to make homeownership more accessible in Miramar, FL. With their low-down-payment mortgage programs – the HomeReady Loan and Home Possible Loan – the giant mortgage backers look to help low-to-moderate income individuals break into homeownership. These two programs have more lenient lending requirements than other conventional loans offered by Fannie Mae and Freddie Mac.
Miramar, FL HomeReady Loan and Miramar, FL Home Possible Loan
Both HomeReady and Home Possible allow borrowers to make a low down payment – a minimum of 3 percent of the home’s sales price – for buying a home. Borrowers are also permitted to use a flexible source of funding – like grants or personal gifts – for the down payment as well as closing costs. Moreover, Home Ready and Home Possible don’t require any minimum contribution from the borrower’s personal funds.
HomeReady and Home Possible Loan programs also allow non-occupant co-borrowers to support the borrower to get the loan approved financially. This is beneficial for borrowers who can’t afford the loan but want to share the cost of the loan with their family members. This means that parents and other relatives of the family can improve a borrower’s chances of getting approved for a HomeReady or Home Possible Loan in Miramar.
Since borrowers are allowed to make a minor down payment with HomeReady and Home Possible Loan, both loans require them to purchase mortgage insurance – this is a premium that’ll be added into the mortgage cost. HomeReady’s and Home Possible mortgage insurance is more affordable, and it can be canceled under certain circumstances.
HomeReady and Home Possible Loan’s Borrower Benefits in Miramar, FL
- Serve low-to-moderate income borrowers
- Credit score as low as 620 accepted
- Cancellable mortgage insurance
- Down payment as low as 3 percent
- Underwriting flexibilities, including boarder income and rental unit
- Gift and grants can be used for closing costs and down payment with no minimum contribution required from the borrower’s personal funds
HomeReady and Home Possible Loan’s Income Requirements
The income requirements of both HomeReady and Home Possible were updated recently to include properties in low-income census tracts. Now you may be eligible for a HomeReady or Home Possible Loan if your income is below 80 percent of the area median income (AMI) for the property’s location. This limit is also applicable to properties in low-income census tracts.
For years, FHA loans have remained popular for their low down payment requirements. However, with Fannie Mae’s and Freddie Mac’s HomeReady and Home Possible Loan programs, borrowers have more options than ever before. The features of these loan programs are appealing for borrowers with low-to-moderate income. So if you meet the income eligibility requirements of the HomeReady or Home Possible Loan and want to finance a home with a low down payment, consider applying for one of these two loans. Call FourPath Mortgage at 954-507-7553 for more information about HomeReady and Home Possible Loan.