There are close to 10 low- and no-down payment mortgages available to buyers of homes and two of them are particularly well-suited for buyers with an average or better credit rating.
The mortgages are offered under the brand names HomeReady and HomePossible, which is interesting in its own right because mortgages don’t usually get branded like products you’d buy at a store.
But, the government wants buyers to ask for these loans by name because they’re geared at buyers in under-served neighborhoods, and areas with larger minority populations overall.
Anyone can use HomeReady and HomePossible, and qualification standards are relaxed as compared to other loans, as are quoted mortgage rates. HomeReady and HomePossible-eligible home buyers get access to discounts on mortgage rates up to zero-point-five-oh percentage points, which can reduce a monthly payment by a lot.
Plus, if choose to make a small down payment with your HomeReady or HomePossible-branded mortgage, which you don’t have to, but if you do, you get a discount on your monthly mortgage insurance that other home buyers can’t get.
Eligibility for HomeReady and HomePossible is location-based; it matters where you buy.
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