Home Ready:
A Home Ready loan is Fannie Mae product designed to help more borrowers become homeowners. These loans are intended for low income borrowers looking to purchase or refinance.
A Home Ready Loan allows borrowers to have low income, utilize rental income, obtain gifts to be used towards the down payment/closing costs of the loan, and have the option to cancel their mortgage insurance once their home equity reaches 20%.
For a Home Ready Loan you can:
- Have low income.
- Be a first-time or repeat homebuyer
- Have limited cash for down payment.
- Have a credit score ≥ 620; borrowers with credit scores ≥ 680 may get even better pricing.
- Utilize rental income from a legal accessory unit
Home Possible:
A Home Ready loan is Freddie Mac product designed to help more borrowers become homeowners. These loans are intended for low income borrowers looking to purchase or refinance.
A Home Ready Loan allows borrowers to have low income, utilize rental income, obtain gifts to be used towards the down payment/closing costs of the loan, and have the option to cancel their mortgage insurance once their home equity reaches 20%.
For a Home Ready Loan you can:
- Have low income.
- Be a first-time or repeat homebuyer
- Have limited cash for down payment.
- Have a credit score ≥ 620; borrowers with credit scores ≥ 680 may get even better pricing.
- Utilize rental income from a legal accessory unit
- Have an appraisal completed with no utilities on and appliances not in place.
