Feb 02 2023

7 mortgage solutions for unique situations

homebuyer programs
homebuyer programs

There’s more than one path to homeownership. Specialty homebuyer programs can help make it possible.

At Academy Mortgage, we know that not every homebuyer fits into a neat little box. If some of the more well-known home loans don’t seem to work for your situation, your journey may not be over yet. Other specialty homebuyer programs could help put homeownership in reach for you.

7 programs every homebuyer should know about

Is one of these homebuyer programs right for you?

1. HomeReady®.

HomeReady® is one of Fannie Mae’s homebuyer programs designed to help low-to-moderate income buyers. Features of the program include a low down payment requirement, reduced mortgage insurance, and the option to accept down payment funds from flexible sources, like gifts, grants, and cash on-hand. Best of all, first-time and repeat homebuyers may qualify.

HomeReady® could be ideal if you’ll be relying on others to help fund your home purchase. With gifted down payment and closing costs, no minimum personal contribution is required from you. Additionally, income from others in the house, like renters or boarders, can be factored into your application.

2. HomeStyle® Renovation Loan.

Fannie Mae also offers the HomeStyle® Renovation Loan to help buyers get the most out of their investment. The HomeStyle® Renovation Loan combines the cost of a home with the cost of renovation. Many homebuyers appreciate this loan because it requires just one application, one closing, and one monthly payment. It’s also possible to use a HomeStyle® Renovation Loan with HomeReady®, reducing the down payment to 3 percent.

A HomeStyle® Renovation Loan provides a convenient way for homebuyers to make repairs or renovations using a first mortgage, rather than a second mortgage, home equity line of credit (HELOC), or another more costly financing method. This loan can also be used to refinance and renovate.

3. Bank Statement Loan.

Are you self-employed and needing a mortgage? Academy’s Bank Statement Program can help. To apply for a Bank Statement Loan, no tax returns are required. Personal and business bank statements are enough. This non-prime loan alternative can be used by self-employed buyers and those whose tax returns and employment history may not show financial viability.

4. Extended Lock.

As interest rates change, it might bring you peace of mind to know you can lock in your rate for up to 360 days and float down to a lower rate if interest rates drop before your closing date. With an Extended Lock, an upfront fee will apply, ranging from 0.25 to 0.50 percent of the loan amount. However, this fee is fully refundable and will be reimbursed at the time of loan funding.

Avoid the uncertainty of rising rates: Ask your local Academy Loan Officer about a 360-Day Extended Lock.

5. Temporary Buydown.

Like an Extended Lock, a Temporary Buydown is one of the homebuyer programs that’s frequently used in a higher-rate environment. With a Temporary Buydown, either a seller, builder, or lender will contribute funds to temporarily “buy down” a homebuyer’s interest rate, usually by 1 percent per year for up to three years. At the end of each year, the interest rate increases by 1 percent until it returns to the rate a homebuyer locked into.

As a result, you as a buyer may pay much less interest over the life of your loan.

6. Lock and List.

If you’re hoping to sell and buy a new house, you might appreciate Academy’s Lock and List program. A seller who wants to attract more potential buyers can use Lock and List to combine a locked mortgage rate with a Buydown. This allows a seller to list their property at a lower rate. If an interested homebuyer qualifies for a mortgage with Academy, then the interest rate that the seller locked in will transfer to the buyer.

7. Down payment assistance (DPA).

When it comes to your down payment, 20 percent may not be needed. Down payment assistance homebuyer programs may be available to both first-time and repeat buyers, with many funded at the local level. The Hometown Heroes Program—which works as a no interest second mortgage—forgivable grants for up to 5 percent of the loan amount, and combined down payment/closing cost assistance are a few examples.

Down payment assistance may also be offered to healthcare workers, educators, Veterans, and more. To find out which DPA program you might qualify for, contact your local Academy Loan Officer.

Don’t know if you can afford a house?

It’s possible that one of these homebuyer programs could help. Your Academy Loan Officer can assess your needs and present you with your most affordable mortgage options. If homeownership doesn’t make sense now, it might make sense later. Connect with your local Academy Loan Officer.

All mortgage products are subject to credit and property approval. Rates, program terms, and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Additional conditions, qualifications, and restrictions may apply. Please contact Academy Mortgage for more information. MAC224-1485193.