Mortgage Insurance Explained: PMI, MIP, and VA Funding Fees
Reading Time: 2 minutesBuying a home is an exciting journey, but navigating the details can feel overwhelming. One aspect to consider is mortgage
Start with just 3% down and save on mortgage insurance. Plus, with the exclusive Welcome Home RateBreak, enjoy a 2% rate reduction in your first year and 1% in your second— making your new home more affordable from day one.
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With the Welcome Home RateBreak, on a $300,000 loan, your monthly payment would decrease by about $375 in the first year and $195 in the second.
Enjoy lower monthly payments spread over 30 years with a fixed interest rate.
Lower mortgage insurance costs make your monthly payment even more affordable.
If your details are close to these guidelines, we encourage you to apply or talk to us. Even if a HomeReady & Home Possible Loan isn’t the right fit, we may have other options that work for you.
Must be your primary residence. You can also use this loan to refinance an existing mortgage.
Must meet income eligibility requirements based on where you want to buy a home.
You'll need a credit score above 620 and a manageable debt-to-income ratio (DTI).
You'll need a 3% down payment, with closing cost between 3-6%.
Estimate your monthly payments quickly and easily. Adjust loan terms, down payments, and interest rates to find the best fit for your budget.
See how refinancing can lower your monthly payment or help you access cash. Compare options and find out how much you could save.
Common Questions About This Loan — Answered for You
HomeReady and Home Possible offer similar benefits for homebuyers with low to moderate incomes, but they’re backed by different organizations. HomeReady is from Fannie Mae, while Home Possible is from Freddie Mac. Both programs help make homeownership affordable with reduced down payments and lower mortgage insurance requirements, giving you more flexibility to buy or refinance your home.
The mortgage you get with HomeReady or Home Possible will be a 30-year fixed rate loan. So, the interest rates are usually close to 30-year conventional rates. These programs are specifically structured to be affordable, and additional savings like the Welcome Home RateBreak can further reduce the interest rate, providing savings over the initial years.
Nope! While these loans are great for first-time buyers, you don’t have to be a first-timer to qualify. HomeReady and Home Possible are available to any eligible buyer who meets the income and credit requirements, so even if you’ve bought a home before, you could still qualify. If you’re a current homeowner, you can use this loan to refinance to a new rate or term. (Cash-out refinances are not allowed.)
Not at all. You can use these loans to buy a variety of properties, including 1- to 4-unit homes, as long as one of the units will be your primary residence. These loans work for condos, townhomes, and more—giving you flexibility in the type of home you want to purchase.
The Welcome Home RateBreak is an exclusive offer to help you save on interest in the early years of your loan. For the first year, you’ll enjoy a 2% reduction on your rate, and in the second year, it drops by 1%. This temporary reduction means lower monthly payments upfront, which can make a big difference as you settle into your new home.
Discover how HomeReady & Home Possible loans make homeownership affordable with low down payments, reduced mortgage insurance, and exclusive rate offers. Learn how these options help homebuyers reach their goals.
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