Many people assume they can’t buy a home because they don’t have a big enough down payment. The truth is, there are several loan options that can help bypass this obstacle, such as the HomeReady mortgage.
The HomeReady mortgage is a conventional loan and is one of the easiest mortgage programs to qualify for. With a HomeReady loan, you can pay as little as 3%. That’s even less than an FHA loan’s 3.5% down payment. Not to mention, you can use gifts, grants, or a small loan to help cover the down payment or closing costs. You can also use income from another adult living in your home, such as grandparents, parents and working children, as a way to help you qualify.
A HomeReady loan is ideal for a borrower:
- With low income
- Who is a first-time or repeat homebuyer
- Who has limited cash for a down payment
- Who is looking to purchase or refinance a home
With the Home Ready loan, borrowers that fit into any of the above areas can get easier access to low-down payment mortgages at today’s current rates.
To qualify the requirements may vary based on the specific lender, but some of the minimum requirements set by Fannie Mae include:
- You must not earn more than 80% of your area’s median income
- You must agree to complete a 4-6 hour online homeownership education course
- You need a FICO score of at least 620 in most cases
- You need to use the home as your primary residence
- You need a debt-to-income ratio no higher than 50%
If you fall under any of the above categories, the HomeReady loan program may be the perfect option to help you achieve homeownership.
For more information or to determine whether HomeReady mortgage is the best option for you, contact our team of experienced loan officers at Georgia Platinum Mortgage.