Finding your dream home can be tough, but acquiring a practical mortgage loan can seem even more difficult. If you are new to the home buying market, it is important to understand the different types loans available to you so that you can make the best decision. In particular, you need to know more about the Fannie Mae HomeReady loan, since it was designed particularly for first-time home buyers. To help you out, here are some of the most frequently asked questions regarding Fannie Mae HomeReady mortgage loans.
Do I Qualify for a Fannie Mae HomeReady Loan?
Fannie Mae HomeReady was designed with first-time homebuyers in mind. Since you only have to make a down payment of at least 3%, you don’t have to have a high income or large savings to qualify. And candidates with low to moderate income can even acquire a HomeReady loan with a credit score as low as 620, although having a 680 or higher will give you more favorable terms, such as a better interest rate.
What Are the Advantages of a Fannie Mae HomeReady Loan?
The minimum down payment of 3% for Fannie Mae HomeReady loan is an attractive feature to many people with limited savings. This payment can even be made with monetary gifts, grants, and Community Seconds, making it even more affordable. With a HomeReady loan, you also receive reduced private mortgage insurance coverage that can be cancelled once your home equity reaches 20%. Another advantage of HomeReady is that boarder or rental income can be factored into the application income to help improve the borrower’s debt-to-income ratios.
Is the Fannie Mae HomeReady Loan Program Right for Me?
The needs and wants of homebuyers are diverse, which is why HomeReady loans were created to help increase eligibility and simplify the process. HomeReady has some of the benefits of government-insured mortgages, without some of the negative strings attached. If you want to find an affordable way to get the home of your dreams, HomeReady may be the right fit for you.
Where Can I Get a Fannie Mae HomeReady Loan?
Butler Mortgage has over 25 years of experience working with both first-time and experienced buyers looking to acquire a mortgage loan in Central Florida. If you want to learn more about whether you qualify for Fannie Mae HomeReady or any other first-time homebuyer loan program, contact our mortgage experts. Call us today at 407-931-3800 for more information.