Income-Based Homebuying Credit

Buying a home is possible.

Low down payments and flexible borrower requirements can open the door to homeownership.
Low down payments
Flexible credit guidelines
Flexible borrower requirements

Down Payment Assistance for Qualified Homebuyers

Does homeownership feel out of reach? For potential homebuyers that are not able to commit to the standard 20% down payment, Fannie Mae and Freddie Mac offer two mortgage loan options that make lower down payments possible: the HomeReady and Home Possible programs. Our Mortgage team will review your finances and determine which program is the best fit for you to help make your dreams of homeownership reality.
 
  • Down payments as low as 3%
  • More flexible borrower requirements than other mortgage options
  • Supplemental boarder or rental income accepted 
  • Ideal for first-time homebuyers, move-up borrowers, or retirees
  • Minimum credit score requirements
  • Income cannot exceed 80% of the area median income in the planned area of purchase
  • Mandatory homeownership education course
 

HomeReady vs. Home Possible Loans

  HomeReady Home Possible
Minimum down payment 3% 3%
Minimum credit score 620 620
Mortgage insurance requirement Yes, until 80% LTV ratio is reached. Reduced PMI with less than 10% down payment. Yes, until 80% LTV ratio is reached. Reduced PMI with less than a 10% down payment.
First-time homebuyer requirement? No No
Flexible down payment and closing costs sources? Yes Yes
Income limits? Yes Yes
Boarder income allowed? Yes Yes

Speak with a Michigan First Mortgage Loan Officer today to learn more and see if you qualify.