First-Time Home Buyers
At Midland States, we believe that buying a first home should be an exciting and memorable experience. Our Mortgage Lenders will take the time to explain the steps necessary for home ownership and will patiently answer all of your questions. Purchasing a home can feel like a bunch of big decisions all at once, especially for a first-time homebuyer, but there are several great options available specifically for First-Time homebuyers.
HomeReady®
HomeReady® by Fannie Mae is an affordable, low down payment mortgage product designed for credit-worthy low- to moderate-income borrowers, with expanded eligibility for financing homes in low-income communities.
- Low down payment; as little as 3% down for home purchases.
- Flexible sources of funds can be used for the down payment and closing costs with no minimum contribution required from the borrower’s own funds.
- Non-occupant borrowers permitted
- Cancellable mortgage insurance (restrictions apply)
- Reduced MI coverage requirement for loan-to-value ratios above 90% (up to 97%)
- Easy-to-use, online Homeownership education course helps buyers get ready to buy a home and be prepared for the responsibilities of homeownership.
Home Possible®
Home Possible® offered by Freddie Mac is an alternative to FHA. It features the ease of a conventional mortgage with a low down payment option and flexible credit terms. Designed for low-to moderate-income homebuyers or buyers in high-cost or underserved communities.
- Low down payment; as little as 3% down for home purchases.
- Down Payment can come from a variety of sources, including family, employer-assistance programs and secondary financing.
- Mortgage insurance (MI) can be cancelled after loan balance drops below 80 percent of the home’s appraised value.
- Mortgage term flexibility with fixed-rate and adjustable rate terms.
- Borrowers without credit scores are eligible for mortgages with down payments as low as five percent.
- Program is not limited to First-Time Homebuyers. Borrowers who meet the income requirements can qualify.
HomeOne℠
Home Possible® offered by Freddie Mac is an alternative to FHA. It features the ease of a conventional mortgage with a low down payment option and flexible credit terms. Designed for low-to moderate-income homebuyers or buyers in high-cost or underserved communities.
- Choice product for purchasing single family homes, including townhouses and condos.
- There are no income limit requirements and no geographical restrictions.
- At least one borrower must be a First-Time Homebuyer if a purchase transaction
- Standard Mortgage Insurance (MI) coverage applies.
- All borrowers must occupy the property as their primary residence
- Homebuyer education required for purchase transactions when all borrowers are First-Time Homebuyers.
- Down Payment Assistance program and Affordable Secondary financing funds can be used for down payment and closing costs.
HomeReady is a registered trademark of Fannie Mae. Home Possible is a registered trademark of Freddie Mac. HomeOne is a service mark of Freddie Mac.
