Who Does the HomeReady and Home Possible Mortgage Programs in Tamarac, FL
Buying a house with low-to-moderate income isn’t easy and you’ll come across several obstacles in your struggle. Saving for a down payment is difficult and when you are earning less, it can be tough to pay the bills on time and keep your credit pristine. The cherry on top is the fact that you need to keep your debt-to-income ratio (DTI) low enough to qualify. Fortunately, there are a few conventional loan programs in Tamarac, FL that can help low-to-moderate income consumers break into homeownership. The HomeReady and Home Possible Mortgage programs in particular are a great choice for low-to-moderate income borrowers in Tamarac, FL. Let’s see what these mortgages programs are all about.
Tamarac, FL HomeReady Loan
The HomeReady Loan program, offered by Fannie Mae, allows borrowers in Tamarac, FL to qualify with as little as 3 percent in down payment. Borrowers can also use a flexible source of funding – like gifts or personal funds – for the closing costs and down payment. Not only that, but HomeReady Loan doesn’t require a minimum contribution from the borrower’s funds.
Since borrowers are allowed to make a low down payment, they must purchase mortgage insurance. This insurance is affordable and can also be cancelled later under certain circumstances.
HomeReady Loan Requirements
HomeReady is available to the individuals in Tamarac, FL who are either purchasing or refinancing a single-family house. If you want to qualify for this mortgage, you must meet the income limits. More specifically, your income can’t be more than 80 percent of area medium income (AMI) for the property’s location. Borrowers that decide to use the HomeReady Loan program are required to complete an educational course. This is a requirement of Fannie Mac.
Tamarac, FL Home Possible Loan
The Home Possible Loan, offered by Fannie Mae, enables low-to-moderate income borrowers buy a home. It allows homebuyers to use non-traditional income source – like rental income – to qualify for a loan. Key benefits of the Tamarac, FL Home Possible Loan program include potentially lower interest rate, low credit score and down payment requirement, and ability to use additional income sources for loan qualification.
Home Possible Loan Requirements
Home Possible Loan is available to first-time homebuyers as well as owners who’ve previously owned a home. However, the borrower who owns the property cannot be an owner of any other residential property. Tamarac borrowers seeking to refinance an existing property can also apply for a Home Possible Mortgage. The minimum credit score required for the mortgage is 620 while a higher credit score may help you get lower rates. Moreover, borrowers must purchase a mortgage insurance to qualify for the Home Possible Loan.
The income eligibility requirements for the Home Possible Loan were recently revised. Now the qualifying income of a Tamarac borrower may not exceed 80 percent of the AMI for the location of the home. This includes properties in low-income census tracts.
Both HomeReady and Home Possible loan programs are a great option for low-to-moderate income borrowers. If you meet the eligibility requirements of these loans and want to apply for either of them, contact Fourpath Mortgage at 954-507-7553.