Is a HomePossible Mortgage loan right for you?
The HomePossible Mortgage offers more options and credit flexibilities than ever to help you attain the dream of owning a home.
In addition to its down payment requirement of as little as 3%, HomePossible now offers more options to get you into your dream home. Co-borrowers who do not live in the home can be included for a borrower’s one-unit residence, borrowers are permitted to have another financed property, and more – all with competitive pricing and the ease of a conventional mortgage!
Benefits of a HomePossible Mortgage loan
- Realize the milestone of homeownership without the barrier of gathering a 20 percent down payment.
- Apply sweat equity for up to the entire amount of the down payment and closing costs.
- Non-occupying co-borrowers can contribute to borrower funds on one-unit properties.
- Cancel mortgage insurance upon reaching 20 percent equity, reducing the monthly mortgage payment and potentially saving thousands over the life of the loan.
- Enable empowered decisions and life-long responsible homeownership with required homeownership education.
HomePossible Mortgage loan eligibility requirements
- Flexible sources of down payments: Down payment can come from a variety of sources, including family, employer-assistance programs, secondary financing, and sweat equity.
- Income limits: There may be certain income limits. Contact us to see if you qualify!
- Maximum LTV ratios: Low down payment with a maximum of 97% LTV, 105% TLTV with Affordable Seconds, and 97% HTLTV for 1-unit properties.
- Mortgage Insurance: Mortgage insurance on 1-unit properties can be cancelled after loan balance drops below 80% of the home’s appraised value and cancellation criteria are met. MI coverage requirements are reduced for LTV ratios above 90%.
- Pricing: Credit fees are capped and less than standard fees for all loans over 80% LTV.
- Eligible property types: 1-4 units, condos and planned-unit developments; manufactured homes are eligible with certain restrictions.