Whether you’re a first time homebuyer or you’re buying your 20th house, the down payment required is usually the biggest struggle in the home loan process. By using the HomeReady™ mortgage program, you don’t have to worry about the down payment because the HomeReady™ mortgage program only offers a 3% down for first time homebuyers.
Besides the amazing low down payment of only 3%, the HomeReady™ mortgage program also offers a flexible source of your down payment. These funds can come from out of pocket, from your 401(k), or you can receive these funds as a gift from family or friends. The HomeReady™ mortgage program also offers a down payment assistance program that can help with your down payment or your closing costs. Another amazing benefit to the HomeReady™ program is the easy to qualify requirements. Below demonstrates a few of the amazing benefits the HomeReady™ program offers.
HomeReady™ Mortgage Program Benefits
- 3% down payment option as well as down payment assistance to help with down payments or closing costs.
- Borrowers can include income on their application from a non-occupant borrower. This is someone who is on the mortgage, but doesn’t live on the property.
- Borrowers can also include income from a non-borrower occupant. This is someone who lives on the property with the borrower, but is not included on the mortgage.
- The HomeReady™ program doesn’t require MIP or PMI cost due up front. MIP is Mortgage Insurance Premium and PMI is Private Mortgage Insurance.
- The program also offers flexible mortgage qualifications.
Eligibility and Qualifications
Regardless of the mortgage program you’re interested in, every one of them is going to have a list of qualifications. It’s best if you do as much research as possible beforehand in order to find out which mortgage program best fits your needs. Besides researching for your mortgage program you’re also going to want to look into lenders as well. Shop around to different lenders as their guidelines and qualifications may differ. Compare rates, guidelines and mortgage programs to find the best lender for you. When shopping for a lender, ask the following;
- Which home loan mortgage program best suits me?
- How much will my monthly mortgage payments be?
- How much money will I need to come up with to put “down”?
- What documents should I have ready in order to speed up the loan process
After you have done an ample amount of research and feel confident in your decision of lender and home loan program, now it’s time to apply. Once you have applied and are waiting for your approval, the next step is to get a little first time home buyer education. The First Time Homebuyer Education Course is a class that can be taken in person or online and can help you succeed as not only a first time homebuyer but a first time home owner as well.
Homebuyer Education Course
If you have decided to further your dreams of homeownership and have chosen the HomeReady™ mortgage program to help you achieve your goal, there’s one stipulation. If you’re a first-time homebuyer, you will need to go through the homebuyer education course. This class will inform you about utilizing the down payment assistance program, as well as how to maintain your home and keeping up with your mortgage payments. While he HomeReady Mortgage Program requires you take this class if you are a first-time homebuyer, and the classes can be very beneficial for repeat home buyers, your lender may determine you do not need to take the class. Ask your lender for more information on the homebuyer education course.
How Your Credit Information Plays into Your Loan Options
Depending on the mortgage program you use, is what will determine the specific credit requirements. You could be able to qualify for one program, but denied for another. This is why it’s important to do your research for these loan programs. Just because you’re denied one program, doesn’t mean you’re denied from all the loan programs, there are hundreds of loan programs out there, even ones for people with low income or bad credit so don’t lose hope. Below demonstrates some disqualifying credit criteria factors for the HomeReady™ mortgage program. Remember just because you don’t qualify for this program doesn’t mean your dreams of home ownership are crushed. Also, if any of the following credit criteria pertains to you and you want to utilize the HomeReady™ mortgage program, take the required steps to fix your credit and then apply at a later time.
Disqualifying Credit Factors for the HomeReady™ Mortgage Program
- Bad Credit Rating- usually anything below a 600 is not eligible for this program.
- Seriously Delinquent Debts- this includes any back taxes that are owed and late student loan payments.
- Multiple Unpaid Accounts in Collections- this also includes high dollar amounts of unpaid accounts that are in collections.
- More than three 30-day late mortgage or rent payments within 1 calendar year.
- Unpaid Tax liens
- Chapter 7 or Chapter 13 bankruptcies
- Any foreclosure within the last three years
Many first time homebuyers have a lot of questions and feel the home loan process is a complicated one, however when you need some answers you can come right here and get them. Click the link below to be matched with a qualified lender specialist who would be happy to answer all your questions and help you get started with your HomeReady mortgage. The process is quick and easy to get started and will only take a few minutes of your time. Click the link below to begin making your dreams of home ownership into a reality.