This loan program is designed for borrowers that have low to moderate income. Borrowers can qualify for a conforming conventional mortgage with a down payment as low as 3% of the property purchase price and no ($0) minimum borrower financial contribution. This program can also be used for a “no cash out” refinance of an existing mortgage. The benefits for Home Possible® are:
- The down payment can be as low as 3% with no minimum borrower contribution.
- There are multiple flexible sources of income allowed, including rental income from boarders and other units in multi-unit properties.
- A potentially reduced interest rate for borrowers with low income sources (or borrowers living in underserved areas).
- No FHA mortgage insurance premium paid upfront.
- Potentially lower private mortgage insurance (PMI) cost as compared to the ongoing FHA mortgage insurance premium MIP cost.
- No need to maintain reserves if you are buying a single-family property.