Designed for creditworthy, low-to-moderate income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities.

• Down payment as low as 3%. Ideal for home buyers who can't afford a large down payment. 
• Flexible sources of funds. Extended households may help you qualify. Co-borrowers are not required to live in the home, so relatives and other individuals may assist you with your home purchase.
• Homeownership education to help you succeed. Convenient online education prepares you to buy a home and own a home for the long run.

Comparing HomeReady to FHA
HomeReady Mortgage

• Down payment as low as 3%.
• Can work with Fixed Rate Mortgages or ARMs.
• Flexible sources of funds. Extended households may help you qualify. Co-borrowers are not required to live in the home, so relatives and other individuals may assist you with your home purchase.
• Cancellable mortgage insurance.
• Homeownership education required.

Pro:  For home buyers who can't afford a large down payment. Designed for creditworthy, low-to-moderate income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities.  Mortgage Insurance can be cancelled at certain LTV levels.
Con: Credit score requirement may be higher than FHA mortgage.

FHA Mortgage

•  Insured by the Federal Housing Administration.
• Can work with Fixed Rate Mortgages or ARMs.
• Allow for down payment with as little as 3.5%. Money can be gifted by a family member.
• Minimum credit score of 500 to qualify.
• Mortgage insurance is required – protects the lender from a loss if borrower defaults on the loan.

Pro: For those with less than perfect credit or new homebuyers, the FHA loan provides the opportunity to get a mortgage.
Con:  Upfront and monthly mortgage insurance can be expensive.  Mortgage insurance can never be cancelled.

Merrimack Valley Credit Union (MVCU) and Bridgewater Credit Union, a division of Merrimack Valley Credit Union (BCU), are here to help.  Contact our Mortgage Consultants to discuss your housing needs, learn about our affordable programs or to apply for a mortgage.