For home buyers
HomeReady® and Home Possible® Loans in Michigan
HomeReady® (Fannie Mae) and Home Possible® (Freddie Mac) are affordable lending solutions designed for low-to-moderate income borrowers. These loans offer low down payments, reduced mortgage insurance costs, and flexible underwriting for first-time and repeat buyers alike.
- No credit pull to talk
- Licensed broker, NMLS 1647301
HomeReady® and Home Possible®
Key benefits
Just 3% Down
Affordable entry into homeownership
Lower Mortgage Insurance
Reduced mortgage insurance premiums.
Credit Flexibility
Accepts non-traditional and limited credit history.
HomeReady and Home Possible against standard conventional
Same 3% down, same conventional loan, but cheaper to carry if your household income is under the cap for the area. Most people who qualify never find out they did.
| Detail | HomeReady or Home Possible | Standard conventional |
|---|---|---|
| Is there an earnings ceiling | Yes. Household income has to sit at or under the area median 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 | None. The entire down payment and closing costs can be gifted or come from assistance. | Gifts are allowed, though some products still want a minimum contribution. |
| Is a course required | Yes, a short homeownership education course, usually online and inexpensive. | Not required. |
| 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
If your details are close to these guidelines, we encourage you to apply or contact us.
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 version; Home Possible® is Freddie Mac’s. They’re very similar, but with slight variances in income treatment and guidelines.
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.
What happens if I start earning more after I close?
Once the loan closes, income changes don’t affect eligibility. You just have to qualify based on AMI at time of application.
Do I still pay mortgage insurance on these?
Yes, but it’s discounted and drops off when you hit 20% equity.
What our clients say
Samantha was absolutely wonderful to work with when we purchased our new home last month. She made herself available day and night for us and was always able to quickly respond to our questions. She made the entire process so comfortable and easy. 10/10 would highly recommend!!
Samantha and align lending are always a pleasure to work with. I recommend my clients here and they always are quick to help, knowledgeable and make the process as smooth as possible. We will definitely keep using them for our mortgage needs in the future.
The pre-approval process for my home search in Bloomfield Hills was fast and organized. Samantha answered all my questions and helped me feel confident moving forward.
Align Lending helped make purchasing my home in Madison Heights a smooth experience. I appreciated the regular updates and clear explanations along the way.
I highly recommend Align Lending to anyone looking for a mortgage broker in Southeast Michigan. The team was knowledgeable, responsive, and easy to work with.
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.
Individual experiences. Results vary.
The first conversation does not have to turn into anything
Tell Samantha what you are trying to do, and she will tell you what actually matters in your situation. If the answer is that you should wait, she will say that too.
- 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
A licensed Align loan officer 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.
Start with your question
Build a homebuyer game planAlign 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.
