HomeReady Loan and Home Possible Mortgage in Greenacres, Florida
Low-income borrowers in Greenacres, FL generally find it hard to qualify for a conventional loan due to their large down payment requirement – a minimum of 20 percent of home’s purchase price. Thus, they often resort to FHA loans. FHA loans come with lenient lending requirements – 3.5 percent down payment and credit score as low as 580 – which make them a popular option among low-to-moderate income borrowers. However, these loans tend to be expensive and aren’t the best option for everyone.
Fortunately, now Greenacres, FL borrowers with low-income have more than one options. They can apply for a HomeReady Loan, offered by Fannie Mae, or Home Possible Mortgage through Freddie Mac. Both HomeReady and Home Possible Loan can prove to be a better option than FHA loan for certain borrowers. Below, we have discussed the features and requirements of HomeReady and Home Possible Loan.
Greenacres, FL HomeReady Loan
HomeReady Loan is designed for low-to-moderate income borrowers and can help them buy or refinance a house. The minimum down payment required to qualify for this loan is 3 percent. Moreover, Fannie Mae is flexible about allowing more contributions from family members.
Compared to FHA loans, HomeReady allows borrowers to minimize mortgage insurance premiums and eventually eliminate them. FHA borrowers are required to pay both upfront cost and monthly premiums. On the other hand, HomeReady doesn’t include mortgage insurance as an upfront cost. Thus, the borrower can spend more money on their down payment.
Another great thing about HomeReady loans is that they allow the borrower to share the cost of the loan with family members. Co-borrowers (non-occupant) can financially support the borrower to get approved for the loan.
Since, HomeReady loan is designed for low-to-moderate income borrowers, it comes with income limits – the qualifying income of the borrower should be less than 80 percent of the area median income for the home’s location. This includes homes located in low income census tracts.
Greenacres, FL Home Possible Loan
Freddie Mac has its own 3 percent down payment loan program – Home Possible. Home Possible Mortgage is designed for low-to-moderate income borrowers and can help them buy or refinance a house. Both first-time and repeat homebuyers may qualify for this loan.
Like the HomeReady loan, this program also comes with income limits – a borrower in Greenacres, FL may qualify for a Home Possible loan if their income doesn’t exceed 80 percent of the area median income for the location of the property even if the property is located in low income census tracts.
The minimum credit score required for Home Possible Loan is 620. Borrowers can include money from alternatives source such as rental income to qualify for the loan. Moreover, like the HomeReady Loan, Home Possible Loan doesn’t include mortgage insurance as an upfront cost and the monthly premiums are cancellable under certain circumstances.
Both HomeReady and Home Possible Loan are a great option for low-income borrowers in Greenacres, FL. If you are at a crossroads and can’t decide whether to go with HomeReady Loan or Home Possible Mortgage, call Fourpath Mortgage at 954-507-7553 or Apply Online.