HomeReady and Home Possible – Low Down Payment Loans in Palm Beach Gardens, FL
The people of Palm Beach Gardens, FL, who are looking to purchase a home in the city, are often troubled with down payment requirements. The large down payment prerequisite on conventional loans – typically 20 percent of the home’s purchase – makes it hard for them to acquire a loan and break into homeownership.
Many people turn to FHA loans for their low down payment requirement – a minimum of 3.5%. FHA loans are suitable for people with less-than-perfect credit and low-income, but they can prove to be expensive due to mortgage insurance. Fortunately, now the borrowers in Palm Beach Gardens, FL, can consider applying for conventional low down payment loans from Fannie Mae and Freddie Mac.
Fannie Mae Home Ready and Freddie Mach Home Possible Loan in Palm Beach Gardens, FL
Palm Beach Gardens HomeReady Loan is offered by Fannie Mae, while Palm Beach Gardens Home Possible Loan is available through Freddie Mac. Both these loans require a small down payment – a minimum of 3% of the home’s purchase price. Since you are making a minimal down payment, you have to pay for mortgage insurance. However, unlike FHA loans, mortgage insurance isn’t added to both the upfront cost and monthly premiums. Mortgage insurance is only paid as monthly premiums. This keeps the closing costs down. Moreover, it can be canceled under certain circumstances.
The minimum credit score required to qualify for a HomeReady or Home Possible Loan is 620. There are also income limits on these loans that you should be aware of. Both HomeReady and Home Possible Loans are designed for borrowers with low-to-moderate incomes. This is why only borrowers whose qualifying income is below 80 percent of the area median income for the property’s location may qualify for them.
Both HomeReady and Home Possible allow repeat and first-time borrowers to borrow up to 97 percent of the property’s value. Moreover, they require borrowers to complete a home-buyer education program from an approved provider.
Features of the Palm Beach Gardens HomeReady and Home Possible Loan
- Credit score as low as 620 accepted
- Low down payment – at least 3 percent of the home’s purchase price
- Gifts or grants accepted
- Co-borrower’s income may be considered in the qualification process even if they don’t plan on living in the house
- Income flexibility
HomeReady and Home Possible Loans are an excellent option for borrowers who can’t afford to make a sizeable down payment. They can even prove to be a better option than FHA loans for borrowers with low-to-moderate incomes. If you want to break into homeownership and meet the credit and income requirements of HomeReady or Home Possible loans, you should consider applying for them. To apply for Palm Beach Gardens HomeReady Loan or Palm Beach Gardens Home Possible Loan, call Fourpath Mortgage at 954-507-7553.