Home Possible/ Home Ready Loans

[Maurice Etienne]

Hello All,

I am currently looking for the best possible mortgage option to finance a 3-4 unit property and have overwhelmingly been geared towards an FHA loan. After talking to a colleague, he pointed me towards looking at Home Ready or Home Possible loans. After doing some research I am still a bit confused. From what I understand HomeReady requires 25% down for 3-4 unit properties but Home Possible only requires 5%... does anyone know if that is correct?

Also is anyone able to recommend a Home Possible or Home Ready lender in the Philadelphia or South Jersey area. I have only really been able to identify Quicken Loans as a Home Possible lender... I am sure there are more. Thanks for the help and recommendations all!

[Jerry Padilla]

@Maurice Etienne

You are correct with the down payments. Home Possible is the best route to go for a low down payment MFR. There are a few things with both of these loan options though.

You need to either meet the income restrictions for the the area, or purchase in an area that is considered a no income restricted area. I have had clients purchase successfully with this product so it does work.

Here is the eligibility look up tool for Home Possible;

http://www.freddiemac.com/homepossible/eligibility.html