Mortgages with Little or No Down Payment
Are you concerned about not having enough money for a down payment? Or, would you like to set aside some of the money you have saved for move-in expenses? If so, a HomeReady or HomePossible mortgage might be what it takes to get you into your own home. With this mortgage, you can pay just 3 percent of your home’s purchase price toward your down payment, and this amount can come from sources such as gifts, grants, loans from relatives or nonprofit groups; or employer-assisted housing.
Is This Mortgage Right for You?
If one of these situations describes you, a HomeReady or HomePossible mortgage might be a good fit:
- You don’t have a lot of savings for a down payment and/or closing costs.
- You have access to other sources of funds, such as gifts or loans from family members.
- You prefer to use your savings for other investments or expenditures.
How They Work
You can apply for this mortgage to buy or refinance a one-unit home that you will live in as your primary residence.
You can select from a fixed-rate mortgage with a term of 15 or 30 years, or a 30-year adjustable rate mortgage (ARM). With an ARM, the rate stays fixed for the first 5, 7, or 10 years (you decide), and after that, the interest rate changes annually after the 5th, 7th, or 10th year.
HomeReady and HomePossible mortgages use Fannie Mae and Freddie Mac’s automated underwriting system to evaluate your application.
This means faster service and loan decisions for borrowers with all different types of credit profiles.
HomeReady and HomePossible mortgages are available for all counties in the United States are subject to certain income or non-income limits in your area.