HomeReady Loan and Home Possible Mortgage in Fort Pierce, FL
You have been imaging your dream home for a while now. Unfortunately, you can’t imagine getting approved for a mortgage with your credit and income background. Besides, you are finding it hard to come up with a huge chunk of cash for a hefty 20 percent down payment. What should you in such a case? Consider applying for a Fort Pierce HomeReady or Fort Pierce Home Possible Loan. HomeReady and Home Possible are conventional loans, but come with lenient lending requirements – like a 3 percent minimum down payment –, which makes it easier for borrowers to qualify for them. Below, we have shared the details about the HomeReady and Home Possible Loan.
Fort Pierce, FL HomeReady Loan
Offered by Fannie Mae, the HomeReady Loan is designed keeping in view the needs of low-to-moderate income borrowers. Fannie Mae realizes that low-income individuals in Fort Pierce, FL can’t afford to put 20 percent down. Therefore, it only warrants a 3 percent down payment. However, since you are putting less money down, you must pay for mortgage insurance. The good thing about mortgage insurance with HomeReady Loan is that its cost isn’t added as an upfront fee but you can pay for it in the form on monthly premiums. This helps keep the closing costs down.
Another great thing about HomeReady Loans is that both first-time and repeat buyers can apply for them. Moreover, rental income may be considered in the qualification process and can help improve a borrower’s chance of qualifying for the mortgage. Co-borrower (non-occupant) can also add their financial support to help a borrower qualify for the HomeReady Loan.
Since the HomeReady Loan is aimed at low-to-moderate income borrower, it comes with income limits. A borrower may qualify for this loan if their qualifying income doesn’t exceed 80 percent of the area median income for the location of the property.
Fort Pierce, FL Home Possible Loan
Home Possible Loan is quite similar to HomeReady Loan and it is offered by Freddie Mac. The minimum credit score required for this loan is 620. Borrowers who can put a minimum 3 percent down may qualify for the Home Possible Loan in Fort Pierce, FL. However, mortgage insurance must be bought by the borrower who puts less than 20 percent down. The cost of this insurance is added as monthly premiums, which keeps the closing costs down. Freddie Mac also allows borrowers to use alternate income sources to qualify for the Home Possible Loan.
Both first-time and repeat buyers may qualify for a Home Possible Loan. Moreover, co-borrowers (non-occupant) can help a borrower qualify for the home loan. Like the HomeReady Loan, Home Possible is also aimed at low-to-moderate income borrowers. Therefore, only a borrower whose qualifying income is less than 80 percent of the area median income for the home’s location may qualify for this loan.
HomeReady and Home Possible Loan can prove to be a good option for borrowers who are strapped for cash and a need a low-down-payment loan option. If you have any questions about the two loan programs or want to apply for them, call Fourpath Mortgage at 954-507-7553.