Key Features of HomePossible Loans

1. Low Down Payment: HomePossible loans allow for down payments as low as 3% of the home’s purchase price, making it easier for borrowers to qualify with limited savings.

2. Flexible Credit Requirements: HomePossible loans have more flexible credit requirements, allowing borrowers with lower credit scores to qualify for financing.

3. Homeownership Education: Borrowers are required to complete an online homeownership education course to better understand the responsibilities of homeownership and the mortgage process.

4. Cancellable Mortgage Insurance: If the borrower’s equity in the home reaches 20%, the mortgage insurance can be canceled, potentially reducing the monthly payment.

5. Flexible Property Types: HomePossible loans can be used to finance various property types, including single-family homes, condos, and certain manufactured homes.

Advantages of HomePossible Loans

– Low down payment requirement, making homeownership more accessible
– Flexible credit requirements and underwriting guidelines
– Homeownership education to better prepare borrowers
– Potential for mortgage insurance cancellation
– Availability for various property types

HomePossible loans are designed to help low-to-moderate income borrowers, first-time homebuyers, and those with limited funds for a down payment achieve their homeownership goals. By offering flexible underwriting guidelines, low down payment options, and more lenient credit requirements, this program can open doors to homeownership for many individuals and families.

It’s important to note that HomePossible loans have specific eligibility requirements, including income limits and property location restrictions. Consulting with a qualified lender can help you determine if a HomePossible loan is the right choice for your specific situation.