Rental Property Investor · VT · Member since 2017 · 233 posts · 147 votes
I've seen people discussing Home Ready as well as Home Possible loans -- it looks like they both may serve as better alternatives to FHA financing, and I think they both don't require that you don't own other properties. Are there major differences between them? Which is better if you want to use the low down payment method potentially repeatedly? I couldn't tell for sure if they had a similar residency requirement to FHA where you are living in the property for a minimum of 1 year.
Has anyone used these programs - insight? like it? frustrations? etc
Both programs are similar. HomeReady works best for SFH, but also usually has income restrictions. HomePossible can be utilized for multiplexes at 5% and is less likely to have income restrictions. This of course all depends on the location of the property. You can search for the maps and check each property individually. As far as using them repeatedly you'll find it's either too difficult or the numbers are less than desirable. I usually get my buyers to use them for the first property and save the FHA for later. As far as occupancy they do have a 1 year owner occupancy requirement.