For many prospective homebuyers, the dream of ownership feels out of reach due to the assumption that a 20% down payment is required. Fannie Mae's HomeReady and Freddie Mac's Home Possible are designed to shatter that myth. These programs offer flexible underwriting for credit-worthy borrowers with low-to-moderate incomes.
Why Choose These Programs?
3% Down Payment
Purchase your home with as little as 3% down. Even better, the funds can come from gifts, grants, or community seconds.
Flexible Income
Qualify using income from non-borrower household members or even rental income from an accessory dwelling unit (ADU).
Reduced MI
Enjoy reduced Private Mortgage Insurance (PMI) rates compared to standard conventional loans, lowering your monthly payment.
Who is Eligible?
These programs are not exclusively for first-time buyers, but they are income-restricted to ensure they help those who need it most.
- Income Limits: Generally, your income must be at or below 80% of the Area Median Income (AMI) for the property's location.
- Credit Score: Flexible credit requirements, typically allowing scores as low as 620.
- Homebuyer Education: Completion of an online course is usually required to ensure you are prepared for ownership.
"Whether you are buying your first condo or a single-family home, HomeReady and Home Possible provide the leverage you need to stop renting and start building equity."
Your Guide to Homeownership
Ivan Lin
- NMLS: 2462401
- (646) 866-8728
- info@ivanlin.com
- www.ivanlin.com