Are you considering a home loan and live on a low to moderate income? A Fannie Mae home loan (HomeReady®) or Freddie Mac home loan (Freddie Mac®) may be the right solution for you. Designed to help families struggling with income or who live in neglected areas, these loans provide long-term fixed rates. New Horizon Mortgage, Inc. helps Freddie Mac and Fannie Mae loan clients explore their options so they can make the best long-term choices. Contact us for more information on loans in the Travis, Williamson, Bexar, Comal, Guadalupe County areas to start your journey toward being a homeowner.

The Fanny Mae HomeReady Way

Fannie Mae HomeReady loans are designed for low- to moderate-income families in Texas who are looking to purchase a primary residence. The HomeReady loan is designed to help families with limited income (up to 100% of area median income) or in low-income areas designated by the census (no income limits). To be approved for this loan, you must complete an education requirement accepted by the U.S. Department of Housing and Urban Development, known as the Framework® course. You may take this course online or through another mode if you are unable to take it online.

With Fannie Mae HomeReady, you can have a fixed rate for up to 30 years, with as little as 3% down payment on your home (for a single-income unit). With these set terms, we have found many more clients feel they can achieve the dream of owning a home without the risk of getting in over their heads. Additional benefits of this type of loan include:

• The ability to rent rooms (in multi-unit homes) and receive boarder income.
• The ability to have non-occupant borrowers help you with your payments, such as parents or other loved ones.
• A debt-to-income ratio up to 50%.
• Your HomeReady loan home does not have to be your first home.
• You do not have to have mortgage insurance after a certain period of time.
• You can pay for your down payment and closing costs with a number of other ways, including grants.
• Use a non-borrower’s income as a factor to get approval.

The Freddie Mac Home Possible Way

The Freddie Mac Home Possible® mortgage is another flexible mortgage option available through the loan agents at New Horizon Mortgage, Inc. Like Fanny Mae HomeReady, Home Possible is specifically designed for people or families in underserved areas with very low to moderate income with low down payments at 3%. For Home Possible, that means up to 100% of the area median income in high-cost areas with no limit in underserved areas, much like HomeReady. You likewise must complete free training offered online through Freddie Mac or another approved company.

Freddie Mac benefits also include:

• No-cash refinancing options for borrowers living in the home.
• The ability to supplement your down payment with money from family or friends and other secondary financing.
• The ability to purchase a 1-4 unit home.
• Combined incomes to pay the mortgage among multiple-member households.
• The ability to rent rooms and receive boarder income.

 Choosing the “Home” Loan Right for You

We can typically help you decide whether a Freddie Mac or Fannie Mae loan offers the best plan for your unique needs and budget. Rest assured that whichever loan you choose, both have 30-year fixed rates with low down payments. Contact New Horizon Mortgage, Inc. in San Antonio to learn more about Freddie Mac and Fannie Mae loan options today.