Features and Requirements of Port St. Lucie, FL HomeReady and Home Possible Mortgage Loan

Qualifying for a home loan is Port St. Lucie, FL is no easy feat. Most conventional loans come with stringent qualification requirements – like 20 percent down payment and 680 credit score at a minimum –, which make it hard for borrowers, especially ones with low or moderate income, to qualify for them. These borrowers generally try their luck with FHA loans which are backed by the government and as such, come with lenient lending requirements. Even though the requirements of FHA loans are less stringent than most conventional loans, they can prove to be expensive overtime.

Previously FHA loan had no competition and it was the favorite of low-income borrowers. But now, Fannie Mae and Freddie Mac are giving it a hard time with their HomeReady and Home Possible Loans.

Port St. Lucie, FL HomeReady Loan

HomeReady Loan is designed for low-to-moderate income borrowers. It comes with lending requirements so lenient that it feels like a government-backed loan. A borrower may qualify for a HomeReady Loan by only putting a 3 percent down. This is even less than the down payment requirement on FHA loans. Other features of the HomeReady Loan program include:

• Mortgage insurance payable as monthly premiums and may be cancelled under certain circumstances
• Co-borrower (non-occupant) like a parent or any other relative may aid the borrower financially to help them qualify for the loan. It isn’t necessary for them to live in the purchased property
• Both first-time and repeat homebuyers may qualify
• Rental income may be considered as an allowable income source to help a borrower qualify
• A borrower with at least 620 credit score may qualify for the home loan
• Homeowner education course is mandatory

The income limits on the HomeReady Loan were revised in the mid of 2019. According to the latest income limits, a borrower may qualify for the loan if their income doesn’t exceed 80 percent of the area median income for the location of the property they plan on buying.

Port St. Lucie, FL Home Possible Loan

Home Possible Loan is offered by Freddie Mac and like the Home Ready Loan, it is exclusive to low-to-moderate income borrowers. Its requirements are quite lenient. A borrower may qualify for this loan if their qualifying income is less than 80 percent of the area median income for the home’s location. A minimum credit score of 620 is required for qualification. Features of the Home Possible Loan include:

• Mortgage insurance is paid as monthly premiums and not added as an upfront cost. It can also be cancelled under certain circumstances
• Co-borrower (non-occupant) can add their financial support to help a borrower qualifying for the loan even if they don’t plan on living in the same house
• Both first-time and repeat homebuyers can apply
• Homeowner education course is a mandatory requirement
• Income flexibility for borrowers

Final Thoughts

Both HomeReady and Home Possible Loan are a compelling option for low-to-moderate income borrowers. If you have any question about these loan programs or want to apply for them, call Fourpath Mortgage at 954-507-7553.