Fort Lauderdale, FL HomeReady and Home Possible Loan Programs – What Are They and Who Does Them?

The Fort Lauderdale, FL HomeReady Mortgage is an affordable lending product offered by Fannie Mae. It targets buyers and borrowers in designated minority, disaster-impacted, and low-income communities as well as low-to-moderate-income borrowers.  Qualified borrowers in Fort Lauderdale, FL, who lack the funds for a bigger down payment, can take advantage of this mortgage program to make homeownership a reality.

Fort Lauderdale, FL Home Possible is a similar program offered by Freddie Mac. It was introduced to meet the needs of low-to-moderate-income borrowers by providing more flexible financing options to make homeownership achievable.

Features of Fort Lauderdale, FL HomeReady Mortgage Program

• Financing up to 97 percent loan-to-value (LTV).
• Refinancing up to 95 percent LTV.
• Requires a minimum credit score (FICO) of 620.
• Cancellable mortgage insurance.
• Don’t have to be a first-time homebuyer to qualify.
• No geographical restrictions.
• Flexible funding allows cash for closing costs and down payments to come from personal funds, qualified grants, and monetary gifts.
• Rental income can be considered as an allowable income source to qualify a buyer.
• The income limit is 80% of area median income(AMI) for the property’s location. This includes properties in low-income census tracts.

Features of Fort Lauderdale, FL Home Possible Mortgage Program

• 97 percent financing available as a fixed-rate 30-year loan
• No cash-out refinancing options up to 97 percent LTV
• Requires a minimum credit score of 620
• Cancellable mortgage insurance
• Flexible funding – cash for closing costs and funds can come from personal funds or gifts
• Lower interest rates apply to borrowers with income that is less than 80 percent of the AMI or if the home is located in a low-income census tract. Use the Freddie Mac’s Affordable Income and Property Eligibility Tool to determine if your property location or income makes you eligible for lower interest rates

FL HomeReady Mortgage Program Criteria

• One-to-four-unit principal residences are eligible.
• FNMA-approved condos are eligible but must be one-unit properties.
• Borrowers with credit scores more than 620 eligible while borrowers with credit score > 680 may qualify for better rates.
• ARMs allowed include 5/1 with 2/2/5 caps, and 7/1 and 10/1 with caps, which vary according to the standard ARM matrix of Fannie Mae.
• The debt-to-income ratio is determined by the underwriter.

FL Home Possible Mortgage Program Criteria

• 95 percent LTV
• The debt-to-income ratio is determined by loan product advisor or set at 45 percent when manually underwritten
• One-to-four-unit properties eligible
• Manufactured homes and condos eligible
• Fixed-rate mortgages
• 10/1 and 7/1 ARMs if secured by a one-or-two-unit property
• 5/1 and 5/5 ARMs if secured by a one-or-two-unit property other than a manufactured house

Want to get qualified for a HomeReady or Home Possible Mortgage Program in Fort Lauderdale, FL? Call FourPath Mortgage at 954-507-7553.