HomeReady and Home Possible Loan Programs for Low-to-Moderate Income Borrowers in Margate, FL
The process of buying a home can be expensive and daunting, especially if you have a low income. It will likely include a number of financial situations that you have never encountered. Luckily, there are several mortgage programs in Margate, Florida that can make the process of buying a home a little easier on you. Two mortgage programs from Fannie Mae and Freddie Mac – HomeReady and Home Possible respectively – are particularly appealing. Let’s find out what HomeReady and Home Possible loan programs have to offer to the homebuyers in Margate, FL.
Margate, FL HomeReady Mortgage
Margate, FL HomeReady mortgage is a line of conventional home loans offered by Fannie Mae that is meant to help low-to-moderate income borrowers buy or refinance a house. These loans reduce the typical mortgage insurance and down payment requirements while being flexible about allowing family and friends to fund the home, even if they don’t live in the house. This makes HomeReady mortgage program a good option for the people of Margate, FL.
Benefits of Margate, FL HomeReady Mortgage
- Lower credit score requirements – minimum of 620
- Lower down payment requirements – as low as 3 percent
- Allows larger gift in closing and down payment
- Allows friends or family to co-sign on the home loan
- Cancellable mortgage insurance
- Financing up to 97 percent loan-to-value ratio (LTV) and refinancing up to 95 percent
- Don’t have to be a first-time buyer to qualify
Income Eligibility Requirements of Margate, FL HomeReady Mortgage
In order to be eligible for a HomeReady mortgage in Margate, FL, you must meet the income eligibility requirements established by Fannie Mae. Effective July 20, 2019, the income limit for these loans is 80 percent of area medium income (AMI) for the location of the property. Previously, properties in low-income census tracts weren’t included in this but this isn’t the case anymore. You can use the Area Median Income Tool for determining income eligibility for HomeReady in the area where your prospective property is located.
Margate, FL Home Possible Mortgage
Margate, FL Home Possible is a mortgage program created by Freddie Mac to offer low down payment options for homebuyers with low-to-moderate income. Co-borrowers who don’t live in the house can be included for a single-unit residence and borrowers are allowed to have another property in their name.
Benefits of Margate, FL Home Possible Mortgage
- Down payment as low as 3 percent within any minimum borrower contribution
- Rental income can be included from boarders and other units in a multi-unit property to qualify for a loan
- No up-front mortgage insurance premium
- Income flexibility
- Borrowers with a minimum of 620 FICO score may qualify
- Cash for down payment and closing may come from gifts or personal funds
Income Eligibility Requirements of Margate, FL Home Possible Mortgage
A few months ago, income eligibility requirements for a Home Possible mortgage program were amended by Freddie Mac. Now in order to be eligible for this mortgage, the qualifying income of a borrower may not exceed 80 percent of the AMI for the property’s location. Previously there was no limit for properties in low-income census tracts and for all other properties the qualifying income of the borrower couldn’t exceed 100 percent of the AMI.
Want to apply for a HomeReady or Home Possible Mortgage program in Margate, FL? Call Fourpath Mortgage at 954-507-7553.