HomeReady and Home Possible purchase or refinance loan programs in Coral Springs, FL
Coral Springs, located in Broward County, Florida, about 32 km northwest of Fort Lauderdale, is one of the best cities to live in Florida. There are plenty of parks, restaurants, and coffee shops in the city. The median home value in Coral Springs is $364,300 and home values have gone up 2 percent over the last one year. This has made it more difficult for people to buy homes in the city. Low-to-moderate income homebuyers especially find it hard to buy properties in Coral Springs due to lender’s stringent qualification requirements. Fortunately, there are two loan programs that low and moderate income borrowers may be able to qualify for – the HomeReady mortgage and Home Possible mortgage.
HomeReady and Home Possible Mortgage Programs in Coral Springs, FL
Fannie Mae and Freddie Mac are two popular mortgage lenders, created by the Federal Government. Both of them have some options for low-to-moderate income borrowers. The HomeReady mortgage, offered by Fannie Mae, needs to be accompanied by only a 3 percent down payment. This makes it a good choice for people of the Coral Springs who are strapped for cash. The minimum credit score required for HomeReady loan is 620 and the income limit is 80 percent of area medium income (AMI) for the property’s location.
Freddie Mac offers a similar program – the Home Possible mortgage – with down payments as low as 3 percent. This loan comes in 15-to-30-year fixed-rate and 10/1, 7/1, 5/1, and 5/5 adjustable rate terms. With the Home Possible Mortgage, rental income is factored into the qualification assessment, which can help you qualify for the loan.
Benefits of Home Ready and Home Possible Mortgage in Coral Springs, FL
- As low as 3 percent down payment requirement
- Credit score as low as 620 accepted
- Income flexibility
- Cancellable mortgage insurance
- Rental income may be considered as an allowable income source to help a borrower qualify
- Cash for closing and down payment may come from gifts or personal funds
Income Requirements for Home Ready and Home Possible Mortgage in Coral Springs
You may qualify for Home Ready mortgage if your qualifying income doesn’t exceed 80 percent of the area medium income (AMI) for the property’s location. Similarly, if you want to qualify for Home Possible mortgage, your income should not be any more than 80 percent of the AMI for the location of the home you are buying. Both Fannie Mae and Freddie Mac features tools on their website that you can use to find out the area medium income of your property’s location.
Are Margate, FL Home Ready and Home Possible Mortgage Better than FHA?
FHA loans continue to draw the lion’s share of first-time homebuyers, but the numbers are slowly going down. Meanwhile, conventional 3 percent down payment loans are becoming popular. These loan programs are having a positive impact on the first-time home buyer market. However, Home Ready and Home Possible Mortgage programs can still be a little expensive for borrowers with less-than-perfect credit.
If you want to qualify for a Home Ready or Home Possible Mortgage program in Coral Springs, FL, call Fourpath Mortgage at 954-507-7553.