Should You Apply for a HomeReady or Home Possible Loan in Boca Raton, FL
For years, low-income borrowers had to resort to FHA loans because they couldn’t afford to make a 20 percent down payment on conventional loans. The 3.5 percent down payment requirement of FHA loans appeals to many low-to-moderate income borrowers in Boca Raton, FL as it makes it easier for them to qualify for home loan. But, do you know that know you can qualify for a home loan by putting even less money down?
Fannie Mae and Freddie Mac have made this possible with their HomeReady and Home Possible Loan respectively. Let’s see what these loans are and how they can benefit you.
Boca Raton, FL HomeReady Loan
Boca Raton, FL HomeReady Loan, offered by Fannie Mae, is a conventional loan specially designed for low-to-moderate income borrowers. The minimum qualification requirements include a 3 percent down payment and a 620 FICO score. Borrowers who meet these requirements may qualify for a HomeReady loan if their qualifying income doesn’t exceed 80 percent of the area median income for the location of the home they are buying. The benefits of Boca Raton, FL HomeReady Loan include:
Benefits of Boca Raton, FL HomeReady Loan
- Low down payment
- Flexible sources of funding – like gifts or grants – may be used for the closing costs and down payment within any minimum contribution from the borrower
- Non-borrower (co-occupant) can help a borrower qualify for the home loan
- Lower than standard mortgage insurance coverage requirement. Mortgage insurance is also cancellable under certain circumstances
- No geographic restrictions on loan amount
Boca Raton, FL Home Possible Loan
Available through Freddie Mac, the Boca Raton, FL Home Possible Loan is made for low-to-moderate income borrowers. Its requirements are the same as that of HomeReady Loan. A borrower may qualify for a Home Possible Loan if their credit score is at least 620, they can make a 3 percent down payment and their qualifying income is less than 80 percent of the area median income for the location of the property. The benefits of Boca Raton, FL Home Possible Loan include:
Benefits of Boca Raton, FL Home Possible Loan
- A minimum of 3 percent down payment
- Non-borrower’s (co-occupant) income may be considered to help a borrower qualifying for the loan
- Reduced mortgage insurance which can be cancelled under certain circumstances
- Alternate sources of income – like rental income – may be used for loan qualification.
- First-time and repeat homebuyers may qualify
Both HomeReady and Home Possible Loan can be a better option than FHA loans for borrowers who qualify. If you are eligible for these loans, you should definitely apply for them before you try your luck with an FHA loan. If you need any assistance in applying for a Boca Raton HomeReady Loan or Boca Raton Home Possible Mortgage, call Fourpath Mortgage at 954-507-7553.