Home Possible Mortgage
Providing a responsible, low down payment mortgage option to help borrowers realize their dreams of home ownership. It offers 97% loan-to-value limit, making the down-payment requirements much lower than other types of mortgage loans.
KEY FEATURES:
- First-time homebuyers, move up borrowers and retirees
- Eligible properties: One unit properties (Manufactured homes are ineligible)
- Fixed-rate mortgages with multiple repayment terms available
- All borrowers must occupy the property as their primary residence
FLEXIBILITIES:
- Eligible annual income up to 100% of area median income or higher in high-cost designated areas and no income limit in underserved areas
- No reserves required for 1-unit properties
- More eligible sources of funds for down payment and closing costs
- Gift funds allowed
BORROWER BENEFITS:
- Stable monthly payments with fixed rate mortgages
- Flexible sources of funds
- Reduced mortgage insurance coverage levels for loan-to-value ratios greater than 90 percent
- Minimum down payment of 3 percent allowed
- Potentially a lower interest rate
Why choose the Home Possible Mortgage over FHA?
- With Home Possible, conventional mortgage insurance will automatically end when the LTV drops below 80; FHA mortgage insurance will stay for the life of the loan
- There is also no upfront PMI required for Home Possible loans
- Build equity quicker