For home buyers
HomeReady® and Home Possible® Loans in Michigan
HomeReady® (Fannie Mae) and Home Possible® (Freddie Mac) are conventional loans for households earning at or under 80% of their area’s median income. They pair a low down payment with reduced mortgage insurance, for first-time and repeat buyers alike.
- No credit pull to talk
- Licensed mortgage broker, NMLS 2041154
HomeReady® and Home Possible®
Key benefits
Low Down Payment
The same minimum down payment as other first-time conventional loans, with reduced mortgage insurance.
Boarder Income Can Count
With HomeReady, rent from a boarder who lives with you can help you qualify. Standard conventional loans generally do not count it.
Credit Flexibility
Some files with a limited credit history can use nontraditional credit, such as rent and utility payment records.
HomeReady and Home Possible against standard conventional
The same low down payment and the same conventional loan, but cheaper to carry if your household income is under the cap for the area.
| Detail | HomeReady or Home Possible | Standard conventional |
|---|---|---|
| Is there an earnings ceiling | Yes. Household income has to be at or under 80% of the area median income for the address. | None. |
| What the mortgage insurance costs | Reduced coverage, so the monthly premium is lower at the same down payment. | Standard coverage and standard pricing. |
| Money that has to be yours | On a one-unit home, none: the down payment and closing costs can be gifted or come from assistance. Two to four units need a minimum from your own funds. | Gifts are allowed, though some products still want a minimum contribution. |
| Is a course required | Yes, when every borrower is a first-time buyer: a short homeownership course, usually online. | Also required on the smallest down payment option when every borrower is a first-time buyer. |
| If you start earning more later | Nothing changes. Eligibility is measured once, at application. | Not applicable. |
| Rental income from the property | Income from a unit or a boarder can sometimes help you qualify. | Boarder income generally cannot be used. |
Check the income limit for my address
Guidelines
Guidelines for this loan
What HomeReady and Home Possible ask for. Fannie Mae and Freddie Mac set the income limits by address.
Before you run the numbers: the household income you enter here is the figure the program limit is checked against for the address. Fannie Mae’s income lookup shows the limit for an address, and Samantha checks it against Freddie Mac’s too.
Home price at your debt-to-income limit
About 1.5% of the price at Michigan's statewide median homestead rate, the year after the sale. Get the published rate for an address
- Payment at your DTI limit
- $0
- Estimated loan amount
- $0
- Principal & interest
- $0
- Tax + insurance
- $0
- PMI, standard coverage estimate
- $0
A ceiling, not a target. What you are comfortable paying matters more than what a lender allows.
Estimates only, for illustration. Not a loan commitment, an offer of credit, or a rate quote. Actual figures depend on underwriting, credit, income, assets, appraisal and property eligibility. Align Lending LLC, NMLS #2041154, is an independent mortgage broker and does not lend directly. Equal Housing Opportunity.
Official sources
Check the rules at the source
Program guidelines change. These are the official pages we check them against.
Questions about this loan
If yours is not here, ask it on the call. There are no dumb questions.
Do I need to be a first-time buyer?
No, repeat buyers can qualify as long as income and occupancy rules are met.
What is the difference between HomeReady and Home Possible?
HomeReady® is Fannie Mae’s and Home Possible® is Freddie Mac’s. Both cap household income at 80% of the area median for the address and both carry reduced mortgage insurance. The details differ: HomeReady can count rent from a boarder who lives with you, and the two treat some sources of help and some properties differently, so Samantha checks your income and the address against both.
Can I buy a two to four unit property?
Yes. HomeReady® and Home Possible® both allow 1 to 4 unit properties, as long as you live in one of the units.
Do I still pay mortgage insurance on these?
Yes, at reduced coverage. You can ask to cancel it once your balance reaches 80% of the original value, and it ends automatically when the balance is scheduled to reach 78% of the original value, if your payments are current.
What our clients say
Want to shout out Samantha for the expert guidance, made my first-time homebuyer experience seamless! It exceeded expectations and was a stress free process throughout. Grateful for all your help and loving my new home in Bloomfield Hills!
As a first-time homebuyer in Ferndale, I was unsure of some things. Samantha was awesome. She was extremely helpful and made sure I understood every part of the process.
Align Lending helped make purchasing my home in Madison Heights a smooth experience. I appreciated the regular updates and clear explanations along the way.
Individual experiences. Results vary.
Ask Samantha whether this loan fits
Bring your household income and the address. Samantha will check the income limit for that address and compare HomeReady and Home Possible with FHA on your numbers.
- 1
Tell us what you are trying to do
Not what product you want. What you are actually trying to accomplish.
- 2
We look at your situation
Samantha works out what matters most for you specifically.
- 3
You leave with a plan
Your options, the tradeoffs, and your next step. No obligation to go further.
Align Lending LLC, NMLS #2041154, is a mortgage broker. Samantha Shelton, NMLS 1647301. Equal Housing Opportunity. Licensed in Michigan, Ohio, North Carolina, Florida, Louisiana and Texas. Program guidelines on this page are general and change over time; they are not a credit decision, a preapproval, a commitment to lend, or an offer of credit. Approval depends on your full application, the property and the lender's current guidelines.
