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The Conventional 100 mortgage is a no-money-down down payment assistance program for U.S. home buyers. It’s available to first-time home buyers in partnership with Homebuyer.com.
The Conventional 100 offers 100% financing, reduced mortgage insurance rates, and generous approval standards. It’s also a mortgage you can use today – unlike the first-time home buyer tax credit and $25,000 Downpayment Toward Equity Act, which await Congression approval.
Renters can use the Conventional 100 to buy their first home faster with less money out-of-pocket.
This article reviews the Homebuyer.com Conventional 100 mortgage program and how you can apply to buy your first home with no money down.
Click here to get started on your approval.
The Homebuyer.com Conventional 100 mortgage requires home buyers to meet up to nine requirements for their mortgage pre-approval.
The Conventional 100 is a home affordability mortgage for first-time home buyers, which includes all buyers who have not owned a home in the three years before closing. Displaced homemakers and single parents with no prior ownership except while as a spouse also qualify as first-time home buyers.
The Conventional 100 mortgage is for primary residences only. Buyers cannot use the Conventional 100 to purchase a vacation home, short-term rental, or other investment property type.
Co-signers are allowed with a Conventional 100 mortgage, and at least one person on the mortgage application must move into the property within 60 days of settlement.
The Conventional 100 mortgage is for one-unit homes only. Renters may use the Conventional 100 to purchase a detached single-family home or an attached single-family home which includes townhomes, condos, and rowhomes.
Homes in planned neighborhoods with a homeowners association are permitted under the Conventional 100 guidelines, along with single-family homes with a properly-zoned accessory dwelling unit (ADU).
Multi-unit homes, manufactured homes, mobile homes, and co-op properties are ineligible.
The Conventional 100 mortgage is built on conventional mortgage guidelines, which include county-specific loan size limitations. Conventional 100 loan sizes must fall within your local conforming mortgage loan limits.
The Conventional 100 mortgage program limits home buyer household income to 140 percent of the area median income (AMI). All sources of household income are considered under the program, including:
Home buyers whose household income exceeds Conventional 100 maximums can consider other low- and no-down mortgages, such as the Conventional 97 mortgage and the FHA mortgage , which do not enforce a maximum household income.
The Conventional 100 mortgage requires home buyers to carry a 660 credit score or higher.
The program relies upon the FICO credit scoring system, which ignores medical debt and collections. Non-traditional credit sources such as rental payment history and utility payments are not considered.
Home buyers whose credit rating fails to meet Conventional 100 standards should consider an FHA mortgage or another low-downpayment mortgage for first-time home buyers with more forgiving credit score standards.
The Conventional 100 mortgage program is limited to U.S. citizens and lawful United States residents, including permanent resident aliens and non-permanent qualified aliens. The program also allows trust closings for trusts where the beneficiaries meet program residency standards.
Closing in an LLC is not allowed.
First-time home buyers must complete a certified homeownership education course for their Conventional 100 mortgage approval.
Two popular homeownership education courses are Fannie Mae’s HomeView and Freddie Mac’s Credit Smart. Both are no-cost, online options. Many buyers complete their online education class in 2 hours or less.
As of May 9, 2024, The Conventional 100 is available in thirty states. Homes in other states and properties outside the United States in a Territory, Province, or Commonwealth, including Puerto Rico, Guam, and the Virgin Islands, are ineligible.
Home buyers in non-eligible states should consider different low- and no-downpayment programs for first-time buyers, including the 100% USDA mortgage and VA mortgage.
The Conventional 100 is a home affordability mortgage program for first-time home buyers.
The mortgage makes the American Dream of homeownership more attainable through a combination of:
The no-money-down portion of the Conventional 100 is fulfilled using two mortgage liens – one for ninety-seven percent of the home purchase price and one for the remaining three percent of the purchase price plus an additional one percent for closing costs.
The program also offers discounted mortgage rates.
As of May 9, 2024, the Conventional 100 mortgage rate discount is credit-score based. Buyers with lower-range credit scores receive a 0.25 percentage point interest rate discount over comparable 30-year fixed-rate mortgages, and buyers with higher-range credit scores receive a 0.75 percentage point discount.
Lastly, the Conventional 100 discounts private mortgage insurance (PMI) rates.
Eligible home buyers save up to $700 per $100,000 borrowed annually, and PMI is removed when the home’s equity reaches 20 percent.
For today’s mortgage rates, get pre-approved.
The Conventional 100 is a first-time home buyer loan based on conventional 30-year fixed-rate mortgage guidelines. It’s similar to the HomeReady and Home Possible programs from Fannie Mae and Freddie Mac, respectively, with a few key differences.
The most notable difference between the Conventional 100 and the HomeReady and Home Possible programs is that the Conventional 100 doesn’t require buyers to make a down payment. It also lets buyers finance up to four percent of the purchase price for closing costs and settlement fees.
Conventional 100 | HomeReady | Home Possible | |
Down Payment | 0% | 3% | 3% |
Minimum FICO | 660 | 620 | 660 |
First-Time Buyers | Yes | Yes | Yes |
Income Limits | Yes | Yes | Yes |
Boarder Income | Allowed | Allowed | Not Allowed |
ADU Income | Allowed | Allowed | Not Allowed |
PMI Discounts | Yes | Yes | Yes |
Geographic Limits | Yes | No | No |
Closing Cost Credit | Yes | No | No |
Homebuyer Education | Required | Required | Required |
The Conventional 100 is a zero-down mortgage for first-time buyers. However, not all first-time home buyers will be eligible.
The Conventional 100 requires renters to meet program guidelines with checklist items such as:
It also places standards on subject properties, including home type and location.
If the Conventional 100 is unavailable to you, here are other low- and no-down payment mortgage options available to first-time home buyers:
First-time buyers may qualify for federal home buyer tax credits and local down payment assistance. Get pre-approved to check your eligibility.
The Conventional 100 requires a 660 minimum credit score using the FICO scoring system. Alternative tradelines are not allowed.
Yes, home buyers can add other people to their Conventional 100 mortgage application, such as parents or relatives, who are financially able to assist with the mortgage but will not live in the home.
No, signed leases aren’t required to claim income from an ADU. However, without a signed lease, the assigned rent value may be too low to qualify for your loan.
There is no down payment requirement for the Conventional 100 mortgage.
Yes, the Conventional 100 mortgage is available for first-time home buyers only.
Yes, Conventional 100 mortgage guidelines allow cash gifts for a down payment.
No, the Conventional 100 is for single-family homes, which include detached homes, condominiums, townhomes, and rowhomes.
No, community land trusts are ineligible for the Conventional 100 mortgage program.
No, adjustable-rate mortgages are unavailable for the Conventional 100 home loan.
Fannie Mae offers free, qualifying homeownership education through its HomeView website.
Conventional 100 mortgage rates are available as part of a 3-minute pre-approval. Get your mortgage rate quote now.
Wave goodbye to waiting times and say hello to our Immediate Mortgage Approval. It's more than just a mortgage - it's your ticket to home-buying freedom, available anytime you are. With ultra-low rates at your fingertips, the power to secure your future is just a click away. Why wait for office hours? Your home doesn't.
What is a Starter Home?
The Conventional 100 mortgage is a no-money-down down payment assistance program for U.S. home buyers. It's available to first-time home buyers in partnership with Homebuyer.com.
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