If you’re like many buyers, you’ve heard of the Home Possible Advantage program from Freddie Mac–but what is it, and could it benefit you when you’re buying a home in Grand Junction, Fruita, Palisade or another nearby community?
What is a Home Possible Advantage Mortgage?
The Home Possible Advantage program from Freddie Mac is deigned to help low- and moderate-income buyers with limited savings qualify to buy a home. Many first-time homebuyers qualify for this innovative program.
Qualifying for a Home Possible Advantage Mortgage
You must meet minimum credit requirements to qualify for a Home Possible Advantage Mortgage. The minimum threshold is 660 for purchases and 680 for refinances.
You must also earn no more than 100 percent of your area’s median income (you can find the median income for the town you’re moving to here), and you must have enough money to meet the down payment requirements. You’ll also have to pay your closing costs.
Paying Private Mortgage Insurance on a Home Possible Advantage Mortgage
If you aren’t putting 20 percent of the home’s purchase price in as your down payment, you may be required to pay private mortgage insurance, or PMI. That’s not only the case for the Home Possible Advantage Mortgage; it’s true for any mortgage backed by Freddie Mac.
What PMI does is protect the lender if you’re unable to make your mortgage payment. The cost of your private mortgage insurance will vary based on the home’s loan-to-value ratio (that’s how much you owe on your mortgage compared to the home’s value).
Are You Buying a Home in Grand Junction?
If you’re looking for a new home in Grand Junction, we’d love to help you find the perfect space.
While you’re here, you can also check out our:
- Fruita real estate listings
- Palisade real estate listings
- Redlands real estate listings
- Clifton real estate listings
- Glade Park real estate listings
- Loma real estate listings
- Whitewater real estate listings
When you’re ready, call us at 970-765-4135 or get in touch with us online to tell us what you want from your next home. We’ll start a custom search right away.