Loans
HomeReady & Home Possible Loans
HomeReady and Home Possible are low down payment loan programs for buyers with modest incomes. HomeReady comes from Fannie Mae and Home Possible comes from Freddie Mac. Fannie Mae and Freddie Mac are large firms that buy home loans from lenders. Both programs let some buyers purchase with a small down payment, if you qualify. Deb Gontko Klein checks which program, if either, fits your income and your plans. Serving home buyers in Arizona, California & Colorado since 2004.
Who it helps
- Buyers with modest incomes who want a primary residence.
- Buyers with a small amount saved for a down payment.
- Buyers who may have income from family living in the home, if a program counts it and you qualify.
How it works
Down payment: Down payments as low as 3% for a home that will be your primary residence.
Income limits: Each program has income limits based on the area. We can help determine the applicable guidelines in your area.
Mortgage insurance: If your down payment is less than 20%, you may pay private mortgage insurance, called PMI. PMI protects the lender, not you, if the loan is not paid back. The cost of PMI is typically added to the monthly mortgage payment. Once you’ve built sufficient equity in your home, it may be possible to ask for it to be removed later, if you qualify.
Homebuyer class: Homebuyer education is required for first-time homebuyers. Each program offers free online classes that meet the requirement.
Things to think about
- These programs are for a primary residence you live in, not for a second home or a rental home.
- A small down payment means a larger loan. Check that the monthly payment, with insurance and taxes, fits your budget.
Questions people ask
What are HomeReady and Home Possible?
Low down payment loan programs from Fannie Mae (HomeReady) and Freddie Mac (Home Possible) for buyers with modest incomes, if you qualify.
How much do I need for a down payment?
A small down payment may be possible. The amount depends on the program and your finances.
Do I have to take a class?
Homebuyer education is required for first-time homebuyers. Each program offers free online classes that meet the requirement.
Next step: Call Deb at (480) 550-0211 to see if a low down payment program fits you, or apply through Planet Home Lending.
Official source: Consumer Financial Protection Bureau: Owning a Home
Get Started
Talk with Deb
Tell us what you want to do, and we will call you back with clear next steps. It takes about a minute. Prefer to talk now? Call (480) 550-0211.
Serving home buyers in Arizona, California & Colorado since 2004