Check out these interesting programs for moderate income buyers. If you can’t come up with a big downpayment, don’t dispair. There are now mortgages for you!
If you are a young person or family who is renting a home or condo but wish to buy, you have options. Fannie Mae offers mortgages through a program called HomeReady. Freddy Mac has a program called Home Possible Advantage.
The Fannie Mae program has some exceptional terms, especially attractive for young buyers. Buyers can get into a single family home with as little as 3% down payment. Buyers can also use monetary gifts from relatives or friends to come up with the 3%. Downpayment gifts were often a no-no in the past. Buyers can also rent out a room in the house and use the rent as income toward loan qualification. This is great if you have a family member who will live with you but the renter does not have to be family.
There are rules to qualifying. These mortgages are intended for those with moderate incomes. This means that the buyer’s income cannot exceed the median income for the area. If you are a first timer buyer, minority purchaser, extended family group and other “underserved” borrower, these programs may be for you.
Are you a renter who really wants to buy?
Are you afraid that you don’t have enough savings for a downpayment?
Is your credit score a little low (a bit under 700) because you are young and have not had time to build credit?
Don’t just assume that you cannot own a home. These plans may be just right for you.
Call your bank and talk with a mortgage banker or call your Suncoasteam and we can give you a list of mortgage professionals.