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  • Tel: (651) 552-3681

    Home Purchase - Home Refinance
    Serving MN WI IA ND SD

    Cambria Mortgage application Cambria Mortgage My Account Cambria Mortgage app

  • HomeReady ® and Home Possible ® Low Down Payment Loan

    HomeReady Home Possible

    A low down payment mortgage designed with your needs in mind

    Lack of down payment money is the biggest hurdle for most first time home buyers. We eliminate that hurdle for low and moderate income buyers making the dream of home ownership come true.

    Fannie Mae HomeReady® and the Freddie Mac Home Possible ® are conventional loan programs that have lower interest rates and reduced mortgage insurance compared to standard conventional loans. The down payment can come from your own funds, gift funds, grants, and many down payment assistance programs offered throughout the Twin Cities. The Joe Metzler Team at Cambria Mortgage proudly offers HomeReady and Home Possible in Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota. 

     

  • The Many HomeReady Mortgage Loan Benefits

    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!

  • Do I Qualify For a HomeReady Mortgage Loan?

    All mortgage loans have a long list of qualifying guidelines. Therefore we suggest you don't try figuring it out on your own.  Rather, simply complete a full mortgage application, and let one of our expert licensed Loan Officers assist you.

    Click here to complete a full online HomeReady or Home Possible Mortgage Application, or call our Home Ready loan experts at (651) 552-3681 to complete an application over the phone, or to schedule an appointment in our St Paul, MN office.

  • Ideal HomeReady Borrowers

    • Have moderate income
    • Are first-time or even repeat homebuyers
    • Have at least $2,000 to put towards buying a home
    • Have a credit score of at least 620
  • Cancellable Mortgage Insurance*

    Unlike government-insured loans like FHA loans and USDA loans, with HomeReady ®, borrowers may have the option to cancel their mortgage insurance once their home equity reaches 20%. This can result in lower monthly payments down the road.

    *Consult with your Loan officer about how removing PMI (private mortgage insurance works).

  • HomeReady vs FHA

    BenefitHomeReadyFHA
    Downpayment 3% 3.5%
    Cancellable Mortgage Insurance Yes No
    Geographical restrictions on loan amount No Yes
  • What About Paying Loan Closing Costs?

    All mortgage loans have closing costs. Lender fees, appraisal, credit report, title company, county recording fees, state deed taxes, origination fees, initial homeowners insurance, and more.

    These costs need to be paid for by you the home buyer. The best way is always for the buyer to pay cash. But as most first time home buyers have limited funds, you are also allowed to roll the closing costs into the loan with "seller paid closing costs." You can also pay them by taking a slightly higher interest rate.

    Under these two options, you are still paying for the closing costs, but you are essentially paying over time versus having to need more cash out of pocket today. How cool is that?

  • First Time Home Buyer Education Classes Are Required

    Not all first time home buyer programs required home buyer education classes, but some, like HomeReady do. If you are also getting down payment assistance, then you will need a class also

    While we think these classes are beneficial to most new home buyers, before taking a class, contact us to determine if one is even needed. If you need a class for your loan, we will let you know. You can sign up for the required first time home buyer class in MN here.

    PRO TIP: Classes put on by Real Estate Agents do NOT count, and are really more of a sales gimmick to get you to use that agent.

  • Unacceptable Credit Items for First Time Home Buyers

    HomeReady, just like all other mortgage programs considers credit one of the most important aspects if deciding loan approval. Different mortgage loan programs have different credit criteria. You may qualify for one program, but not another. If you have any of the following items, HomeReady will not work for you.

    • Poor Credit (middle credit score BELOW 620)
    • Delinquent Government Debt (back taxes, student loans)
    • Large or multiple unpaid collection accounts
    • More than 2 late mortgage or rent payments in the past 12 months
    • Unpaid Tax Liens (must be paid off to buy)
    • Foreclosure less than 3-years old
    • Bankruptcy Chapter 7 less than 3-years old
    • Bankruptcy Chapter 13 less than 1-year old