Home Ready and Home Possible

There are two really great loan programs offered by Fannie Mae (Home Ready) and Freddie Mac (Home Possible) that combine low down payment loans with superior mortgage terms.

These products even have better terms in many cases than standard conventional financing at a variety of down payment amounts.

Program Highlights:

  • 3% Down minimum
  • Reduced mortgage insurance (with option to skip out on monthly PMI, more info here:http://www.alexjaffe.com/mi  No MI with 20% down
  • Credit score tolerant for credit scores 680-739 (Lower credit scores don’t have as much an effect on rate as on standard conventional financing)
  • Maximum loan amount $417,000
  • Maximum income is the median household income….
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5% Down to $625,500 and more good news

Thanks to Fannie Mae changes Saturday, we no longer require 10% down on loan amounts of $417,001 to $625,500; now primary residence purchasers only need to put down 5%!

Also, all of the down payment can come from family gifts, even when the buyer is purchasing with a co-signer.

Conforming financing is now easier and conforming mortgage insurance costs just decreased this month as well.  This makes a low-down-payment conforming loan a great alternative to FHA financing.

It’s especially easier when considering purchasing a condominium.

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Clear to close in 14-21 days

The new TRID requirements have lead to a big change in the industry with regard to how we approve and close loans.  However, TRID has also been an opportunity to deliver even better customer service, which was the intent of the new law.

Our adjustment has been smooth.  We have had 14 new applications since October 3 which have been already cleared to close so far.  Each application has been cleared to close in 14-21 days.  The average is 17 days.  The rest of our applications in the pipeline are all on…

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Investment Property Loans

An investment property is a purchase for which the planned use of the property is usually for rental income.

We are happy to lend on investment properties.

On account of the greater risk associated with investment loans, these loans come with higher rates, higher down payment requirements, and slightly more restrictive guidelines.

Here, below, is what changes:

Down Payment Requirements:

Loans $1-$417,000: 15%+ Down, but terms vastly improve at 20% and 25% Down.

Loans $417,001-$1,000,000: 25%+ Down

Loans $1,000,001-$2,000,000: 40% Down

(Note: Multi-unit properties require greater down payments, and the loan amounts tiers adjust based on number of units.  Call for details.)

Rates:

To acquire the same rate as…

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Loans without mortgage insurance!

Many buyers who put down less than 20% ask about how they can finance a home purchase without mortgage insurance.

There are two ways to avoid paying monthly mortgage insurance, and that is through either we the lender paying it for you, or through you prepaying it.

This is possible under these loan amounts and these down payments:

Loans up to $417,000, 3% down or more

Loans up to $850,000, 10% down or more

Loans up to $3,000,000, 15% down or more

 

The higher the credit score and the greater the down payment, the less the mortgage insurance costs.  Let’s discuss the 2 programs to…

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Alex Jaffe Alex Jaffe