If you’re like many homebuyers, you find the prospect of saving up a 20 percent down payment a little concerning. That’s completely normal – in some cases, we’re talking about tens of thousands of dollars.
What is the Freddie Mac Home Possible Advantage Loan?
The Freddie Mac Home Possible Advantage mortgage loan is designed for low-and moderate-income borrowers who have limited savings. Often, first-time homebuyers fall into this category (but you don’t have to be a first-time homebuyer in order to take advantage of this program).
Who Qualifies for a Home Possible Advantage Loan in the Tampa Bay Area?
You must have a credit score of 660 or higher (680 if you’re refinancing) in order to qualify for Home Possible Advantage mortgage.
Additionally, borrowers must earn no more than 100 percent of their area’s median income. You can find out what your city’s median income is by using Freddie Mac’s calculator.
Borrowers who use the program must participate in an acceptable borrower education program, such as CreditSmart.
Down Payments With a Freddie Mac Home Possible Advantage Mortgage
If you choose to use this type of mortgage, the down payment option is as low as 3 percent of the home’s selling price. Because that’s such a significant departure from the traditional 20 percent down payment, you will probably need to pay private mortgage insurance premiums, or PMI. Typically, you can stop paying PMI once you’ve built equity of at least 20 percent in your home.
Are You Buying a Home in the Tampa Bay Area?
Call us at 727-584-8480 or 813-961-6000, or get in touch with us online. We’ll be glad to help you find your next home.