Does this sound familiar? You have an enthusiastic client who REALLY wants to buy a home, but has limited financing options – and limited down payment resources. You want to do everything in your power to make that dream come true.
Freddie Mac Home Possible Advantage might be just what you – and your client – are looking for! This home loan is only available for primary residences, but can serve a relatively wide segment of the mortgage market:
- First-time AND repeat buyers
- No cash-out refinance borrowers*
- Borrowers with low to moderate incomes
- Homebuyers in underserved areas
Qualified borrowers may secure a mortgage for an LTV (Loan To Value) up to 97% or TLTV (Total Loan To Value) of 105%. There is no minimum requirement for the property’s LTV.
Home Possible Advantage offers a great deal of flexibility in sources for down payment and closing costs:
- These funds can include gifts from relatives or other sources.
- There is no minimum amount that must come directly from the borrower’s own money.
- There is no requirement for cash reserves, which frees up the buyer’s available resources.
Available for primary residences, this fixed-rate loan (up to 30 years) can be used to finance a one-unit property, condo or planned unit development.** Borrowers who choose the Home Possible Advantage mortgage must complete a homebuyer education course – the CreditSmart® online course is a super-convenient way to fulfill this requirement.
Your clients will also appreciate that there is no upfront PMI with Home Possible Advantage. And conventional MI will automatically be dropped then the LTV drops below 80%.
If you want to learn more information about this fantastic financing option, check out the Freddie Mac Home Possible Advantage Fact Sheet, use the Income & Property Eligibility tool or reach out to your Stearns Account Executive. Let’s help your client achieve their dream!
* No cash-out refinancing is for the purpose of lowering the interest rate or changing the term of an existing mortgage. This type of refinance does not allow you to take cash out of the equity. Closing costs and other fees may apply.
** Manufactured homes do not qualify for this mortgage option.
- By Michael Kearney,
Oct 17, 2016