Do I need a large down payment to buy a home?

Not necessarily. Some conventional and FHA programs offer low down payment options for eligible buyers. The available option depends on your qualifications and property. A smaller down payment can affect mortgage insurance and total costs.

Is my down payment all I need at closing?

No. Closing costs and prepaid items, such as taxes and insurance, can add to the cash needed. Your Loan Estimate will help you review the expected total.

Can family help with my down payment?

Some programs allow documented gifts from eligible donors. Rules vary, and the source of funds must meet the selected program’s requirements. Ask before moving money so documentation can be handled correctly.

Is the smallest down payment always best?

It depends on your budget. Compare the cash you keep available with the payment, mortgage insurance and borrowing costs. A larger down payment may improve some costs, but maintaining savings also matters.

HomeReady® & Home Possible®

LOAN PROGRAM

A smaller down payment may put homeownership within reach. HomeReady and Home Possible offer eligible buyers conventional financing with flexible funding options and reduced mortgage insurance requirements.

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Documentation Needed

South Shore

WHY CHOOSE HOMEREADY OR HOME POSSIBLE?

A Lower Down Payment. A Clearer Path Home.

Fannie Mae's HomeReady and Freddie Mac's Home Possible are separate conventional mortgage programs for borrowers whose qualifying income is at or below 80% of the area median income for the property's location. Eligible one-unit primary-home purchases may qualify with as little as 3% down. You do not have to be a first-time buyer.

Eligible gifts and certain assistance programs may help with the down payment and closing costs. Mortgage insurance generally applies with less than 20% down, with reduced coverage requirements on eligible loans and cancellation available when applicable conditions are met. Closing costs are separate from the down payment.

Who May Be a Good Fit?

Buyers with documented income, manageable monthly debt and limited down payment savings. The income limit depends on qualifying borrower income and the property's location, rather than one nationwide dollar amount.

Examples:

• A first-time buyer looking to keep savings available.

• A repeat buyer within the applicable income limit.

• A buyer using an eligible gift or approved assistance.

Program rules differ. Credit, debts, reserves, property eligibility and education requirements are subject to agency guidelines and lender underwriting. This is not a commitment to lend.

HOMEREADY & HOME POSSIBLE QUICK FACTS

As little as 3% down on eligible purchases

Credit and debts reviewed by the lender

Closing costs are separate

Reduced mortgage insurance coverage may apply

Qualifying income limit: 80% of area median

Primary residences; property rules apply

Eligible gifts and assistance may help

FROM THE BLOG

Helpful Tips & Local Insights

Sonya Bersani Mortgage Broker Lender The Woodlands Texas

Ready to take the next step?

I’m Sonya Bersani. A low down payment is only part of the picture. I can help you compare HomeReady, Home Possible and other available options, check the property’s income limit, and understand how closing costs, mortgage insurance and the monthly payment fit together. Let’s review your goals and questions so you can move forward with a clearer plan.

Sonya Bersani

Loan Originator, NMLS 140571
TREC CE Instructor 10623
Cell 267-934-2659
sonya.bersani@legendhomelending.com

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