HOMEPOSSIBLE® Home Loan Program vs. FHA Loans: The Better Choice for Buyers

Buying a home is one of life’s biggest milestones, and choosing the right loan is essential to making that dream affordable. When comparing the HOMEPOSSIBLE® Home Loan Program to FHA Loans, HOMEPOSSIBLE® stands out as the smarter choice for many buyers. Here’s why:

Lower Down Payment Requirements

• HOMEPOSSIBLE®: Requires just 3% down—that’s less upfront cash, making homeownership more accessible. Plus, you could qualify for up to $2,500 in down payment assistance, easing the path to your new home.
• FHA Loans: Requires 3.5% down, which adds to your initial costs, and there’s no additional assistance included.

No FHA Funding Fees

One of the most significant cost-saving benefits of HOMEPOSSIBLE® is the lack of FHA funding fees:

• HOMEPOSSIBLE®: No funding fees means you can save thousands over the life of your loan.
• FHA Loans: Charge a 1.75% upfront fee and ongoing annual mortgage insurance premiums, which can significantly increase your costs.

Lower Interest Rates

HOMEPOSSIBLE® offers reduced rates, keeping your monthly payments affordable:

• HOMEPOSSIBLE®: Enjoy lower rates that save you money over time.
• FHA Loans: Typically have standard rates that may result in higher monthly payments.

A Competitive Edge in the Housing Market

When it comes to making your offer stand out, HOMEPOSSIBLE® gives you an advantage:

• HOMEPOSSIBLE®: A conventional loan, making it more attractive to sellers who often prefer these over FHA loans.
• FHA Loans: Perceived by some sellers as riskier due to stricter property conditions and requirements.

Why Choose HOMEPOSSIBLE®?

HOMEPOSSIBLE® was designed to make homeownership affordable, accessible, and advantageous for buyers. Here’s why it’s the better choice:

• Lower down payment (3%) with up to $2,500 in assistance.
• No FHA funding fees, saving you money upfront and long-term.
• Reduced rates for more affordable monthly payments.
• A conventional loan structure that’s seller-friendly.

Take the Next Step Toward Homeownership

Ready to explore how HOMEPOSSIBLE® can help you achieve your dreams? Contact us today to learn more about this affordable, buyer-friendly loan program and how it compares to FHA Loans.

*HOMEPOSSIBLE Program -Borrowers may receive up to $2,500.00 for down payment or closing costs, restrictions apply. The program ends 2/28/2025. Income restrictions based on county median limits apply. All loans are subject to underwriting and approval by 1st National Bank. 1st National Bank reserves the right to amend or terminate the promotion at any time. Contact a mortgage banker for more details.

The material provided on this Website should be used for informational purposes only and in no way should be relied upon for financial advice. Also, note that such material is not updated regularly and some of the information may not, therefore, be current. Please be sure to consult your own financial advisor when making decisions regarding your financial management.