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A Lower Down Payment Can Make Homeownership More Attainable
The Fannie Mae HomeReady® Mortgage is a conventional home loan designed to help eligible homebuyers overcome some of the financial hurdles that can make purchasing a home challenging. With a down payment as low as 3% and flexible options for covering down payment and closing costs, HomeReady may provide an affordable path to homeownership for qualified borrowers.
HomeReady® Benefits
HomeReady offers several features designed to make buying a home more accessible:
- As little as 3% down on eligible home purchases.
- Flexible sources for down payment and closing costs, including eligible gifts and grants.
- No first-time homebuyer requirement. Both first-time and repeat homebuyers may qualify.
- Flexible income options that may allow certain rental or boarder income to be considered.
- Cancellable mortgage insurance when applicable requirements are met.
- Available for eligible properties used as your primary residence.
Who May Qualify?
HomeReady is designed primarily for creditworthy borrowers with lower incomes. Generally, qualifying borrower income must be at or below 80% of the Area Median Income (AMI) for the location of the property. Other credit, income, property and underwriting requirements also apply.
Not sure if you qualify? Our mortgage team can review your situation, explain the program requirements and help determine whether HomeReady, or another home loan option, may be right for you.
A USDA Rural Development Loan is a government-backed mortgage program designed to help eligible homebuyers purchase a primary residence in qualifying rural areas. For borrowers who meet income, property and other program requirements, USDA financing offers the opportunity to purchase a home with no down payment and competitive financing options.
Flexible Credit Guidelines
USDA loans offer flexible credit guidelines, which may provide financing opportunities for qualified borrowers who have limited credit histories or may not meet the requirements of some conventional loan programs.
Income-Based Eligibility
USDA loans are available to eligible first-time and repeat homebuyers. Qualification is based in part on household income, which must fall within USDA limits for the property's location and household size. Certain allowable deductions may be considered when determining eligible household income.
No Down Payment
Qualified borrowers may finance 100% of the home's eligible purchase price, eliminating the need for a traditional down payment. USDA loans include an upfront guarantee fee, which may generally be financed into the loan, as well as an annual fee that is typically paid monthly as part of the mortgage payment.
Qualifying Properties
The home must be located in a USDA-eligible area and used as the borrower's primary residence. While the program is commonly associated with rural communities, some properties located near smaller cities and suburban areas may also qualify.
Contact a Union State Bank mortgage lender to learn more about USDA financing, property eligibility and whether this loan program may be right for you.
An FHA loan is a government-insured mortgage designed to make homeownership more accessible for qualified buyers. With a low down payment requirement and flexible credit guidelines, FHA financing may be an option for buyers who have limited funds available for a down payment or who may not meet certain conventional loan requirements.
Low Down Payment
Qualified buyers may purchase a home with a down payment as low as 3.5%. FHA guidelines also allow eligible gift funds and other approved sources to be used toward the down payment and closing costs.
Flexible Credit Guidelines
FHA loans generally offer more flexible credit requirements than many conventional mortgage programs. This may provide additional financing opportunities for borrowers with lower credit scores or limited credit histories.
Mortgage Insurance
FHA loans require mortgage insurance. Borrowers pay an upfront mortgage insurance premium, which may generally be financed into the loan, as well as an annual mortgage insurance premium that is typically included in the monthly mortgage payment.
First-Time and Repeat Homebuyers
You don't have to be a first-time homebuyer to qualify for an FHA loan. Eligible first-time and repeat buyers may use FHA financing to purchase a qualifying home that will serve as their primary residence.
Purchase or Refinance
FHA financing isn't limited to purchasing a home. Eligible homeowners may also have FHA options for refinancing an existing mortgage, depending on their needs and qualifications.
Contact a Union State Bank mortgage lender to learn more about FHA financing and whether this loan program may be right for you.
A VA home loan is a government-backed mortgage program available to eligible Veterans, active-duty service members and certain surviving spouses. Backed by the U.S. Department of Veterans Affairs, VA loans offer valuable benefits designed to make purchasing or refinancing a home more affordable for those who qualify.
No Down Payment
One of the biggest advantages of a VA loan is the opportunity for eligible borrowers to purchase a home with no down payment, subject to VA eligibility requirements and lender approval.
No Monthly Mortgage Insurance
VA loans do not require monthly private mortgage insurance (PMI), which can help reduce the monthly cost of homeownership. A one-time VA funding fee generally applies and may be financed into the loan. Some eligible borrowers, including certain Veterans receiving compensation for a service-connected disability, may be exempt from the funding fee.
Purchase or Refinance
VA loans aren't limited to first-time homebuyers. Eligible borrowers may use VA financing to purchase a primary residence or refinance an existing mortgage, depending on the loan program and qualification requirements.
Additional Borrower Benefits
VA loans do not have prepayment penalties, allowing borrowers to make additional principal payments or pay off their loan early without a penalty. The VA also provides resources and assistance to help eligible borrowers who experience financial difficulty and are having trouble making their mortgage payments.
Who May Be Eligible?
Eligibility is based on military service history and VA requirements. Veterans, active-duty service members, members of the National Guard and Reserve, and certain surviving spouses may qualify. A Certificate of Eligibility (COE) is generally used to verify a borrower's eligibility for the VA home loan benefit.
Contact a Union State Bank mortgage lender to learn more about VA financing, eligibility requirements and whether a VA home loan may be right for you.
The 2026 HSP grant program is closed and not accepting new applications at this time. Contact us for questions regarding this or other mortgage programs.
Union State Bank partners with Federal Home Loan Bank (FHLBank) Topeka to offer grant opportunities for qualified first-time home buyers.
HSP grant funds may be used for down payment, closing cost and repair assistance to first-time homebuyers earning at or below 80% of the area median income for households purchasing or constructing homes in Colorado, Kansas, Nebraska and Oklahoma.
Grant funds are limited and are available to qualified buyers on a first-come, first-serve basis. Union State Bank is a Equal Housing Lender, NMLS # 412388, Member FDIC.
Visit our First Time Home Buyers Grant page to see if you qualify!
Contact us for questions regarding this or other mortgage programs.