Home Possible and HomeReady Loan Mortgage in Delray Beach, FL – Who Does Them?
Home Possible and HomeReady Loan Mortgage in Delray Beach, FL are two similar loan programs offered by Fannie Mae and Freddie Mac, respectively. Borrowers who meet the credit score requirement and income limits on these loans, can apply for them. Both first-time and repeat buyers may be eligible for these loans. The biggest benefit of HomeReady and Home Possible Loan is that they come with low down payment requirements – as low as 3 percent of the property’s purchase price. These relaxed requirements make them a popular option among borrowers who are strapped for cash and can’t put a 20-percent down payment. Below we have discussed the HomeReady Loan and Home Possible Mortgage in detail.
Delray Beach, FL HomeReady Loan
Offered by Fannie Mae, the HomeReady Loan requires the borrower to put a minimum of 3 percent down. The minimum credit score required for qualification is 620, while a credit score of 680 or greater may make the borrower eligible for better rates. Mortgage insurance must be purchased with the loan if the borrower is putting less than 20 percent down. This, however, is only included as monthly premiums and is cancellable under certain conditions.
HomeReady mortgage is also a good option for borrowers who intend to share the loan’s cost with their family members. Fannie Mae allows co-borrowers (non-occupant) to financially support the borrower and help them qualify for the HomeReady Loan. This means that the borrower’s parent or any other relative can help boost their chance of qualifying for a mortgage, even if they don’t intend to live in the bought property.
Requirements for a Delray Beach, FL HomeReady Loan
- A minimum 620 credit score
- Completion of homeowner education course is mandatory
- The borrower’s qualifying income should not be greater than 80 percent of the area median income for the purchased property.
Delray Beach, FL Home Possible Loan
The Home Possible Loan is offered by Freddie Mac, and it is designed to help low-to-moderate income borrowers buy or refinance a house. The program allows homebuyers to use non-traditional income – like rental income – to qualify for a home loan. Since Freddie Mac backs Home Possible Loan, lenders can offer reduced mortgage insurance premiums and rates to borrowers.
Home Possible Loan also allows the borrower to use a co-borrower (non-occupant) to help get approval on the loan. This means that the borrower can include a relative on their mortgage even if the relative doesn’t plan on living in the home. If a borrower puts less than 20 percent down with a Home Possible Loan, they must pay for mortgage insurance. Mortgage insurance is paid as monthly premiums and may get canceled under certain circumstances.
Requirements for a Delray Beach, FL Home Possible Loan
- A minimum of 620 credit score
- First-time buyers must complete a homeowner education course
- The qualifying income of the borrower should not exceed 80 percent of the area median income for the home
Both HomeReady and Home Possible Loan can prove to be a great option for borrowers with low-to-moderate incomes who don’t have enough cash to afford a 20 percent down payment. If you want to apply for either of these loans or have questions about them, talk to the experts at Fourpath Mortgage. Call 954-507-7553 to get in touch with us.