HomeReady $2,500 Credit: Do You Qualify?

You may recognize HomeReady as the 3% down payment program. But did you know that there is a $2,500 credit available to help with the already-low down payment? It’s called HomeReady VLIP, and if you’re a first-time buyer, it could be the solution for you! 

VLIP Income Limitation

HomeReady was designed to make homeownership more accessible to first-time buyers, allowing them to grow wealth and eventually move up and through the homeownership journey. To qualify for HomeReady, there is an income limit of 80% the Area Median Income (AMI). This amount generally reflects the average income of a first-time buyer in the geographic market in which they are looking.

To qualify for the VLIP, borrowers must be at or below 50% of the AMI. This income limit reflects buyers who could be first-time homeowners, and the program will lend a helping hand. To see what you may qualify for, use the AMI lookup tool. 

Why is there a VLIP?

The road to living a housing payment-free life starts with your first home purchase. Even if you start out with a 1-bedroom condo, you’ll reach financial stability more easily and qualify for your dream home more quickly. Renting while saving up to buy your dream home the first time could set you back a significant number of years. 

Now, let’s talk about a common scenario for a buyer who is starting out small. Their income may take a few more years of career building to hit the average; they’ve slowly but surely saved up, but it’s not quite enough; and their credit history isn’t exactly robust, but it’s there. This is exactly the kind of buyer the VLIP is designed for. Here’s why… 

How HomeReady Helps

In addition to the $2,500 credit, all HomeReady loans also include the following benefits:

• Minimum credit score of 620 
• Nontraditional credit allowances for those with little credit history, including consideration of on-time rent payments
• Reduced cost, cancelable mortgage insurance
• Educational course for maximum homeownership preparedness

There’s Always a Way

The moral of today is that there is always a way to ensure that those who feel ready to take the step of owning their home can do so. For some, it takes a little bit of time, but with programs like HomeReady VLIP, homeownership could be within reach today.