The biggest HomeReady ® and Home Possible ® program benefits are clearly the low 3% down payment requirement. But there are additional benefits too, some of them include:

Flexible source of your down payment.

• Your own money (checking / savings)
• Taken from your 401(k)- either a 401k loan, or a permanent withdrawal
• Gift from a family member or employer
• Combined with a down payment assistance program

Lower Interest Rates and Mortgage Insurance

These programs waive standard "risk based pricing" - which normally means you pay a higher rate because of the risk associated with a low down payment. This means you get a lower interest rate, and reduced costs of the monthly mortgage insurance costs.

This is because you are required to take a first time home buyer education class to qualify, and statistic show that those people who take a home buyer education class default on their mortgage less than those who didn't take a class.

Less Restrictive Property Condition Rules

Not only do lenders look at you the buyer, we also consider the condition of the home. These programs are less restrictive about property condition issues, like peeling paint, than low down payment government loans, like FHA Loans, or USDA loans. 

Loan Qualifier

We’re here to make the first time home buyer process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our FREE HomeReady Qualifier.

Used Non-Personal Income to Help Qualify

With HomeReady, you can potentially use other types of household income to help income qualify for the loan from a non-applicant. Income from a non-borrower household member, including a non-relative, can be considered as a compensating factor to allow a buyer to go from a maximum debt ratio of 45%, to a maximum debt ratio of 50% WITHOUT adding the other person to the actual loan. 

For example: 

• Co-Signor allowed
• Maybe your elderly parents will be living in the home. We might be able to use their social security income to help you qualify.
• Maybe your spouse has bad credit, but has a job. We might  be able to use their income too without them actually being on the loan application itself.
• If you've been renting our a room already, and will do it on the new home, this additional income may be considered for qualifying

 Using non-borrower household member family income greatly extends mortgage and homeownership access to multi-generational families!