Fixed Rate loans
- 30, 25, 20, 15, and 10 years terms are all available
- Buy a home with as little as 3% down (primary residence).
- Monthly payments remain the same for the entire loan term.
- MI applies when down payment is less than 20%.
- MI removable - automatically when loan to value reaches 78% and meets certain amount of time.
- MI removable – upon request when loan to value reaches 80% and meets certain amount of time.
- Max qualifying debt to income ratio: 45-50%
Home Ready and Home Possible Products for moderate income applicants (Fixed rate loans)
- Features a reduced mortgage insurance coverage requirement for loans above 90 percent LTV. Mortgage insurance is cancellable.
- Homeownership counseling
- Income limitation: Below 80% of the area medium income
Adjustable Rate Loans
- 3/1, 5/1, 7/1 and 10/1 ARM's. Monthly payments based on a 30 year repayment schedule.
- The rate stays fixed for the first 3, 5, 7 or 10 years (depending on chosen terms), then adjusts annually thereafter.