For many, buying a home can seem like an impossible goal, especially for those who are working hard to make ends meet. High real estate prices, strict credit requirements, and large down payments often feel like barriers that are too difficult to overcome. However, there are programs like HomeReady and Home Possible that are designed to help.
Created by Fannie Mae and Freddie Mac, these programs provide a path to homeownership for individuals and families with limited financial resources. Let’s explore how these programs make the dream of owning a home more attainable.
HomeReady by Fannie Mae:
This mortgage program offers competitive interest rates and lower mortgage insurance costs, but it also considers the combined financial contributions of your household. Whether it’s a family member’s pension or a roommate’s income, these additional sources of income can strengthen your mortgage application.
Home Possible by Freddie Mac:
Similar to HomeReady, Home Possible allows for low down payments and considers the combined income of co-borrowers. While this program is great for first-time buyers, it’s also open to those who have owned a home before.
Key Features of HomeReady and Home Possible
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Low Down Payments: You only need a 3% down payment, making it easier to afford a home.
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Flexible Credit Requirements: Both programs are designed to be more forgiving, allowing buyers with less-than-perfect credit to qualify.
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Removable Mortgage Insurance: Once you’ve built up enough equity in your home, the mortgage insurance can be removed, reducing your monthly payments.
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Combined Household Income: These programs allow you to use the income of everyone in your household to qualify for the loan, recognizing the financial contributions of all.
Eligibility and Application Process
To qualify, your income must be no more than 80% of the area’s median income. Additionally, you’ll need to complete a homeowner education course, which will give you important knowledge to prepare for homeownership.
To get started, you’ll need to work with an approved lender who will guide you through the application process. They will evaluate your income and credit to determine if you’re eligible for HomeReady or Home Possible.
Interested in learning how HomeReady or Home Possible can help you buy a home?
Contact us today for personalized assistance and take the first step towards affordable homeownership.