Davie, FL HomeReady and Home Possible Loan Program
Many potential homeowners in Davie, FL, are concerned about the need to make a large down payment to qualify for a mortgage. It is true that several conventional loans require a large down payment, but there are a few loans that don’t have this requirement. The Davie, FL HomeReady and Home Possible Loan are two such loan programs.
Originally designed to help low-to-moderate income individuals purchase their own house, both the Home Ready and Home Possible Loan programs have helped thousands of families buy the home of their dreams. Both these loans are conventional loans, meaning that they aren’t insured or guaranteed by the Federal Government. However, they have requirements and limits set by their originators – Fannie Mae and Freddie Mac.
Davie, FL HomeReady Loan
Davie, FL HomeReady Loan is a conventional home loan offered by Fannie Mae to help low-to-moderate income individuals break into homeownership in Davie. These loans reduce the mortgage insurance requirement as well as down payment requirements while being flexible about allowing contributions of other people to help a borrower qualify. This makes Davie HomeReady Loan a great choice for borrowers with low-to-moderate income who can’t afford a large down payment and/or need other people to help fund their home purchase.
Davie, FL HomeReady Loan Features
- Offered by Fannie Mae
- Required a minimum credit score of 620
- Cancellable mortgage insurance
- Not limited to first-time homebuyers
- Gifts or personal funds permitted as a source of funds for closing costs and down payment
- Financing up to 97 percent loan-to-value
- Refinancing up to 95 percent loan-to-value
Davie, FL HomeReady Loan Borrower Income Eligibility
HomeReady Loan is available in Davie, FL when purchasing or refinancing a single-family home provided that the borrower meets the property location’s income limits. The income requirements are that the borrower’s income should be less than 80 percent of the area median income (AMI) for the home’s location. The Income Eligibility Lookup Tool can be used to check the property location’s income.
Davie, FL Home Possible Loan
The Davie Home Possible Loan is offered by Freddie Mac to help low-to-moderate income individuals attain the dream of living in their own house. It has a low down payment requirement – as low as 3 percent – and offers more leniency in terms of qualification requirements. For instance, co-borrowers who aren’t sharing the house can be included for a one-unit residence of the borrower. Other features of the Davie Home Possible Loan are discussed below:
Davie, FL Home Possible Loan Features
- Offered by Freddie Mac
- Requires a minimum credit score of 620
- Cash for closing costs and down payment may come from other sources like personal funds or gifts
- Cancelable mortgage insurance
- 97 percent financing available
- No cash-out refinancing options up to 97 percent LTV
Davie, FL Home Possible Loan Borrower Income Eligibility
The income requirements for Davie, FL Home Possible Loan is similar to that of Fannie Mae’s Home Ready Loan. A borrower may qualify for a Home Possible Loan if their income doesn’t exceed 80 percent of the AMI for the property’s location.
Interested in a HomeReady or Home Possible Loan? Call Fourpath Mortgage at 954-507-7553 to apply.