Affordability tools make the path to homeownership a lot easier in Chicago and Nashville. In this article, we’re shining a spotlight on Fannie Mae’s HomeReady and Freddie Mac’s Home Possible program, which help you tackle the upfront costs of buying a home by offering the lowest down payment options and lower your monthly payment with reduced interest rates. Here’s what you need to know: 

Why These Programs Matter for First-Time Buyers

Both HomeReady and Home Possible are designed to help buyers with moderate incomes achieve homeownership by:

• Lowering the Down Payment: As little as 3% down instead of the traditional 5-20%.
• Reducing Interest Rates: Lower pricing compared to standard conventional loans.
• Allowing Flexible Income Sources: You can use income from roommates, rental properties, or family members to qualify.
• Down Payment Assistance Compatibility: These loans work with many state and local grant programs.

Key Features of Each Program

Fannie Mae HomeReady

• 3% Down Payment: Ideal for low-to-moderate-income buyers.
• Lower Private Mortgage Insurance (PMI): Reduced costs compared to standard loans.
• No First-Time Buyer Requirement: But designed with first-time buyers in mind.
• Rental Income Can Help You Qualify: Allows income from boarders or roommates.
• Homeownership Education Required: To set you up for long-term success.

Freddie Mac Home Possible

• 3% Down Payment: Like HomeReady, only 3% is required.
• Lower PMI Costs: PMI can be canceled once you reach 20% equity.
• Lenient credit requirements: Flexible underwriting for borrowers without traditional credit histories.
• Allows Co-Borrowers Who Don’t Live in the Home: Parents or relatives can help you qualify.
• Homeownership Education Required: Ensures buyers understand the process.

How These Programs Help in Chicago & Nashville

Chicago, IL

• High Rent Costs: Many renters find it hard to save for a large down payment- these programs make it easier.
• Down Payment Assistance: The Illinois Housing Development Authority (IHDA) offers grants that can be combined with these loans.
• Competitive Market: First-time buyers can qualify with lower credit scores than traditional conventional loans.

Nashville, TN

• Fast-Growing Market: Rising home prices make a low down payment option crucial.
• Affordable Homeownership Programs: The Tennessee Housing Development Agency (THDA) offers down payment assistance that works with HomeReady & Home Possible.
• Music City Living: First-time buyers can become homeowners sooner with reduced mortgage costs.

If you’re a first-time homebuyer in Chicago or Nashville, these programs can make homeownership more affordable and achievable.

📞 Talk to a mortgage professional to see which program fits your needs.

🏡 Check if you qualify for down payment assistance in your area.

📚 Complete the homeownership education course and start your journey!

Need help finding the right loan? Let’s connect today and explore your options!