The Pros & Cons of HomeReady Loans

– Hey guys, Austin Schneider
here and today we’re gonna give you the pros and the
cons of a HomeReady loan. Pro number one of a HomeReady
loan is you only need three percent down for a down payment. Con number one is that
there are some income limits that do apply for this type of home. Typically, the income limits
are based off of the city that you’re buying the home in. Pro number two is that
if you have a roommate that plans to follow
you into this new home, you can actually use that rental income that they will be using
for your home purchase to qualify for the HomeReady loan. Con number two is that
there’s some further education for you as a home buyer in the form of home ownership courses
that you’ll need to take in order to qualify for a HomeReady loan. Pro number three is that the
Private Mortgage Insurance is cancelable, unlike a loan like an FHA. Con number three of a HomeReady
loan is that typically the credit requirements
are a little bit higher than a loan like an FHA, so make sure that you’re on the higher end of that bracket before you get
going on that HomeReady loan. Alright guys, thanks so much for watching, we’ll see you on the next one. (upbeat music)

2 comments on “The Pros & Cons of HomeReady Loans”

  1. eliahs300 says:

    Who deos pro con pro con list the cons then the pros don’t get fancy

  2. Tenzin Lodoe says:


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