💸 Impacts Interest Rate 🛡️Affects Mortgage Insurance (PMI) 📈 More Competitive Approval Odds 🤝Paired with Flexible Guidelines
💰Low Minimum Down Payment = Easier Entry 📉Lower Down Payment = Higher Loan To Value (LTV) 🛡️PMI Is Still Required - But Discontinued 💼Gift Funds & Grants Allowed 📈More Down = Better Terms
✅Shows the lender your ability to repay the mortgage💰 A lower DTI = less financial risk, so lenders are more confident in approving the loan.🏠Programs like HomeReady/Home Possible aim to promote sustainable homeownership, and keeping DTI in check helps reduce the risk of default.
💸They're Required Out-of-Pocket Expenses 🧰Affects Total Cash-to-Close 🎁Flexible Sources Allowed 🏦Impacts Monthly Payment If Rolled In 📊Can Influence Loan Approval
🔑 Example: Buy a duplex with a HomeReady loan, Live in Unit A, Rent out Unit B, Use potential rental income to help qualify for the loan (with some restrictions)
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