Let’s be honest, 2020 has been a kick in the gut for many of us. Did anyone expect to be working from home more than in the office?
That home feels a little smaller than, say, a year ago. Squeezing two breadwinners and a couple of kids within the same four walls has been, um, memorable. It has also led many families to talk about finding a bigger home – maybe even owning a first home.
Even in this challenging year – with Covid and other craziness – there are keys that can open doors to possible homeownership. People who may think they don’t have the financial resources to purchase a home may want to think again.
Fannie Mae HomeReady and Freddie Mac Home Possible are two popular conventional loans that are geared towards buyers that make less than the annual median income in their area. The government-backed programs have reduced interest rates and lower mortgage-insurance rates.
Buyers can bring as little as 3% down to the closing table. That’s eye-opening.
These loans are a great alternative to an FHA (Federal Housing Administration) loan, as HomeReady and Home Possible come with smart incentives to low- and middle-income households. Even mortgage insurance can be erased after a number of years.
One requirement of these programs is that the borrower’s income must be at or below 80% of the median income for the local area. That means, if a household in our three-county region collectively earns $85,520 or less, applicants will likely qualify for either program.
Learn more about both HomeReady and Home Possible from my Living the Dream blog archive. Contact me or your favorite mortgage lender for more information.
FANNIE MAE HOMEREADY® MORTGAGES: ANOTHER OPTION FOR HIGHER-RISK BORROWERS
FREDDIE MAC HOME POSSIBLE MORTGAGE®: YET ANOTHER AVENUE TO HOME OWNERSHIP