The 3% Down Loan Most Buyers Miss
It beats FHA rates and costs less every month
💰 3% down with better pricing than standard conventional
📉 Lower rates than FHA in most cases
🏠 Cheaper PMI than FHA (and no upfront fee)
✅ Income limits unlock the savings You might be thinking income limits sound like a bad thing - but they're actually your ticket to better pricing.
What Are HomeReady & HomePossible?
They're conventional loans with better pricing
✅ Conventional loan - Backed by Fannie Mae or Freddie Mac Not FHA or VA. These are conventional loans.
🎯 Income-qualified - Must be at or below 80% AMI
💰 Reward for qualifying - Lower rates and PMI than standard conventional Maybe you've been told you can't afford to buy, or that you're stuck with expensive FHA. This changes that.
HomeReady vs HomePossible vs Standard Conventional vs FHA
Down Payment | Rate vs Standard | PMI Cost | Income Limit | |
HomeReady (Fannie Mae) | 3% | 0.25%-0.50% lower | 20-30% cheaper | 80% AMI |
HomePossible (Freddie Mac) | 3% | 0.25%-0.50% lower | 20-30% cheaper | 80% AMI |
Standard Conventional | 3% | Standard pricing | Standard PMI | None |
FHA | 3.5% | Higher rates | Higher + upfront | None |
Example comparison only | Not an offer to lend HomeReady and HomePossible are basically the same loan - one's Fannie Mae, one's Freddie Mac.
Why HomeReady/HomePossible Beats Standard Conventional
Same down payment, better pricing
💰 Lower interest rate - Typically 0.25%-0.50% lower On a $300k loan, that's $50-$100 less per month.
📊 Cheaper PMI - 20-30% less monthly mortgage insurance You're not sacrificing anything to get this better pricing.
✅ All conventional benefits - PMI cancellable at 80% LTV, flexible terms
Example savings on $300k loan:
- Rate difference: $50-$100/month
- PMI difference: $30-$50/month
- Total savings: $80-$150/month Maybe that's the difference between affording the home you actually want and settling for less.
Why HomeReady/HomePossible Beats FHA
💵 No upfront mortgage insurance - FHA charges 1.75% upfront ($5,250 on a $300k loan)
📊 Lower monthly PMI - Often 30-40% less than FHA
🔓 PMI drops off - Cancellable at 80% LTV FHA is permanent on 3.5% down, so you're stuck with it.
💰 Better interest rates - Typically 0.25%-0.50% lower than FHA You might be worried that qualifying is harder - but if you meet the income limits, this is actually easier to afford long-term.
The Income Limit Game (And How To Win It)
Understanding AMI
AMI = Area Median Income for your county
- You must make ≤ 80% of your county's median income
- This is household income, not just borrower income This is where most people think they're disqualified - but there are strategies.
- Varies by location Higher in expensive areas, lower in rural.
Example:
- County AMI: $100,000
- 80% threshold: $80,000
- Your household income needs to be $80,000 or less
Strategies To Qualify
🏠 Only one spouse on the loan
- Both on title = both own the home
- Only one on the loan = only their income counts toward the limit You might be thinking this sounds like cheating the system - it's not. It's completely legitimate.
- Great for dual-income couples where one person's income alone qualifies
💼 Selective income inclusion
- Bonus and commission - We don't have to use it if it hurts your AMI
- Overtime - Can be excluded if not required for qualification
- Part-time income - Optional to include You're probably worried you'll be stuck just over the limit - we have ways to work with that.
🔍 Digital asset verification
- Uses read-only bank account access instead of statements
- Can help keep reported income lower for AMI purposes
- Faster verification process These aren't loopholes you're exploiting - they're program features designed specifically to help buyers like you.
🏡 Ready To Get Pre-Approved?
We help buyers in 49 states • Soft credit pull • Fast turnaround
👉 Start at winthehouseyoulove.com
One More Thing: Credit Score Floor Removed
Big Change
🎯 620 minimum used to be the hard floor for HomeReady/HomePossible
✅ Now available below 620 with approved automated underwriting Maybe you thought your credit score ruled you out - this opens the door.
💡 Makes these loans even more accessible than before
⏰ But What About All The Other Requirements?
You know income limits and down payment - but what about debt-to-income, credit score specifics, and documentation? My conventional loan requirements video breaks down everything you need to qualify.
👉 Watch next: [Conventional Loan Requirements Video - LINK PLACEHOLDER]