Low Down Payment Home Loans
Hi, it’s Mack with One Trust Home Loans and thank you for being here today. You know, I’ve talked about the disaster relief mortgage recently and just had a real scenario where we had a young man who did qualify for the disaster relief mortgage, but was unfortunately not able to participate in it just because he was looking for condominiums and we just couldn’t find a condominium project in the areas that he wanted that were approved for FHA loans. As I stated before, the disaster relief mortgage is a FHA 203(h) mortgage.
HomeReady Offers Low Down Payment Home Loans for Houston Home Buyers
So today, I thought I would talk about FannieMae’s HomeReady program. Now, it is a program that is not designed just for first time homebuyers, and the down payment requirement is only 3%. HomeReady is designed for low to moderate income and does have geographic or income restrictions for the geographic areas in which the home is located.
You don’t have to be a first time homebuyer, but you can’t currently own a home to participate in this program. What else can I say about it? HomeReady has a slightly lower than market interest rate. So, the interest rate is very aggressive. Mortgage insurance is cancellable. So, you don’t have to carry the mortgage insurance for the life of the loan like you would if you were to do a disaster relief mortgage. It also has flexibility on income.
FannieMae HomeReady Allows for Boarder Income
I had a young man recently whose father lived with him and helped him pay the bills. And with appropriate documentation, I was able to use a portion of that income, what we call boarder income, to help him qualify for more home.
30-year fixed mortgages and 15-year fixed loans are available for single family dwellings and condominiums as well
I hope this information was helpful. Thank you again for attending and this MortgageMack out. Have a great day and happy holidays