Guidelines and Requirements of HomeReady and Home Possible Loan in Lake Worth, FL

With the overwhelming varieties of loan products available in Lake Worth, FL, many residents don’t know about the HomeReady and Home Possible Loan by Fannie Mae and Freddie Mac, respectively. These are two amazing loan programs designed to assist low-to-moderate income individuals. There are a few advantages to using the HomeReady or Home Possible Loan program over FHA financing, including lower down payment and cancellable mortgage insurance. Below we have discussed the features, guidelines, and requirements of both HomeReady Loan and Home Possible Loan in Lake Worth, FL.

Features and Guidelines of the Lake Worth HomeReady Loan

• Down payment as low as 3.5 percent
• Lower mortgage insurance requirement
• Mortgage insurance is cancellable
• First-time homebuyer, as well as repeat buyers, are allowed
• Must have at least 620 FICO score
• There aren’t any geographical mortgage amount restrictions
• Broader rental income can be used to qualify
• Co-borrowers (non-occupant) are allowed

Eligibility Requirements of the Lake Worth HomeReady Loan

Borrowers with at least 620 FICO scores may qualify, while a credit score greater than 680 may make you eligible for better rates. There are also income limits on the HomeReady loan. You may only qualify for the loan if your qualifying income is less than 80 percent of the area median income for the home’s location. This includes the properties located in low census income tracts.

Features and Guidelines of the Lake Worth Home Possible Loan

• A minimum of 3 percent down payment required
• Can be used to purchase a 1 to 4 unit property
• With certain restrictions, the borrower may buy a manufactured home
• Co-borrowers (non-occupant) are allowed
• Must have at least 620 credit score to qualify
• May be used with a 30, 25, 20, or 15-year fixed mortgage
• Adjustable-rate mortgages are also available
• Available to both first time and repeat homebuyers

Eligibility Requirements of the Lake Worth Home Possible Loan

A borrower may qualify for the Lake Worth Home Possible Loan if their credit score is at least 620. However, they are only eligible if their qualifying income doesn’t exceed 80 percent of the area median income for the property’s location, including properties located in low-income census tracts.

Benefits of Lake Worth HomeReady and Home Possible Loans

The low down payment requirement is the greatest benefit of the HomeReady and Home Possible Loans. The down payment required for these loans is even 0.5 percent less than that required for an FHA loan. You have to pay for mortgage insurance if you are putting less than 20 percent down, but the cost of this insurance is only added to monthly premiums. FHA loans add the cost of mortgage insurance to both the upfront cost of the home and monthly premiums. Another great thing about HomeReady and Home Possible Loans is that mortgage insurance with them can be canceled under certain circumstances.

Final Thoughts

Both Lake Worth HomeReady and Home Possible Loans can be a good option for borrowers with low-to-moderate incomes. Do you think you can qualify for these loans? Apply online FourPath Mortgage today to find out.