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You thought that you didn’t have enough money to buy a home?  Not so!

Home Possible Advantage, offered by Freddie Mac, and HomeReady, offered by Fannie Mae, are similar programs for homebuyers without large down payments.

Both of these programs let you borrow up to 97 percent of the property value with a first mortgage.

Both of these programs are for the purchase of primary residences only — no vacation houses or rentals.

The 3% down payment can be a gift from a relative, a spouse, a girlfriend or boyfriend, or a fiancé/fiancée.

The programs do allow non-occupant co-borrowers when the down payment is 5% of the purchase price or more.  So, you can help your adult child or aging parent buy a home. You don’t have to live there.

And the Home Ready program allows a borrower to use boarder income to help get qualified. Boarders must have a 12-month history of living with you and contributing income. Documentation of all twelve months is not required.

Now that conventional 3% down loans are a reality, buyers have a real alternative to FHA. While the FHA loan has its benefits, it comes with high upfront fees and permanent mortgage insurance.  But these Conventional loans have no up-front mortgage insurance fees, and the insurance can be waived when the loan amount is less than 80% of the home’s value. If your credit score is 620 or more this 3% down payment product is a real option to FHA loans.

Contact us to see if you qualify, and check out your low rate and payments!

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