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Home Ready and Home Possible
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 for loan amounts up to $647,200 5% Down minimum for loan amounts $647,201-$970,800.
- Reduced mortgage insurance (with option to skip out on monthly PMI, more info here: https://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 income is 80% of the median household income. In DC the 2022 income cap is $112,400. To look up what the income limit is, use these two tools:
Freddie Mac: Home Possible Income and Property Eligibility and just type in the property address. Home Possible requires completion of an online home buying test, which takes a few minutes and is located at http://homebuyers.mgic.com/ Your home buyer education code is ajaffe@gofirsthome.com
Fannie Mae: Home Ready lookup just type in the property address. Home Ready requires completion of a ~3-4hr online class. This is the link to the class for Home Ready.
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
