Home Possible and Home Ready

There are two really great loan programs offered by Fannie Mae (Home Ready) and Freddie Mac (Home Possible) that combine low down payment loans with superior mortgage terms.

These products even have better terms in many cases than standard conventional financing at a variety of down payment amounts.

Program Highlights:

  • 3% Down minimum
  • Reduced mortgage insurance (with option to skip out on monthly PMI, more info here: http://alexjaffe.com/mi  No MI with 20% down
  • Credit score tolerant for credit scores 680-739 (Lower credit scores don’t have as much an effect on rate as on standard conventional financing)
  • Maximum loan amount $424,100 for 3% down. $636,150 for 5%
  • Maximum income is the median household income.  In DC that may be around $107k to $109k.  However there are many properties where no income limits apply.  To look up what the income limit is, use these two tools:

Fannie Mae: Home Ready lookup just type in the property address.  Home Ready allows loan amounts $424,101 to $636,150 as well, but with 5% down.  This is the link to the class for Home Ready.

Freddie Mac: Home Possible Income and Property Eligibility and just type in the property address.  The required class is at http://homebuyers.mgic.com/  Your home buyer education code is ajaffe@gofirsthome.com

It’s absolutely worth considering these products as comparisons against both FHA and standard conventional financing.  Or as comparisons against 0% down loans.  I’m happy to help you figure out what the best plan for financing is.

Questions, or ready to pre-qualify?  Call me at 240-479-7658 or ajaffe@firsthome.com.  Pre-Qualify Now

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