Affordable Conventional Home Financing with as Little as 3% Down!

Whether you're buying your first home or purchasing again, these conventional loan programs may help make homeownership more attainable.

Highlights:

• Down payments as low as 3% for eligible borrowers
• Conventional financing with competitive interest rates
• Cancelable private mortgage insurance (PMI) once eligible equity requirements are met
• Gift funds, grants, and many down payment assistance programs may be used
• Available for many first-time and repeat homebuyers
• Fixed-rate mortgage options available
• Reduced mortgage insurance coverage requirements compared to many standard conventional loans
• Homebuyer education may be required for certain first-time homebuyers

What Are HomeReady® and Home Possible®?

HomeReady® and Home Possible® are affordable conventional mortgage programs backed by Fannie Mae and Freddie Mac, respectively. Both programs were created to expand homeownership opportunities for qualified borrowers by offering lower down payment requirements and flexible qualifying guidelines.

While the programs are very similar, your loan originator will determine which option best fits your financial situation based on your income, property location, and automated underwriting results.

HomeReady® vs. Home Possible®

Common Eligibility Requirements

Although guidelines vary, borrowers typically need:

• Household income generally at or below 80% of the Area Median Income (AMI)
• A minimum 3% down payment
• Satisfactory credit history and qualifying debt-to-income ratio
• The home must be a primary residence
• Completion of an approved homebuyer education course when required by program guidelines

Your mortgage professional can help determine which program best fits your situation.

Contact a Homestead Funding Loan Originator today to learn whether HomeReady® or Home Possible® is right for you.