Welcome Home RateBreak

Finding the right mortgage to finance your home is one of the most important decisions you’ll make during your homebuying journey. For those unable to commit to the standard 20% down payment, for a limited time only, JVB is offering the Welcome Home RateBreak 2-1 Buydown. With the Welcome Home RateBreak 2-1 Buydown borrowers using the HomeReady or Home Possible mortgage loan options can take advantage of a 100% lender funded buydown to reduce their interest rate 2% in year 1 and 1% in year 2 and more down payment flexibility requiring as little as 3% down payment.*

This offering is particularly beneficial for first-time homebuyers. The mortgage you get with HomeReady or Home Possible will be a 30-year fixed rate loan. Meaning, the interest rates are usually close to 30-year conventional rates.

How does Welcome Home RateBreak Work?

Welcome Home RateBreak is a 2-1 temporary buydown. Here’s what that means.

A buydown lowers the interest rate on a home loan.
A temporary buydown means you only get the lower interest rate for a period of time – not over the life of the loan.
The 2-1 represents the amount and timing of the temporary buydown. In this case, 2% off your rate the first year, 1% the second year.
Welcome Home RateBreak is only available for loan amounts of $350,000 or less.

To be eligible for Welcome Home RateBreak, you just need to qualify for HomeReady or Home Possible. When you start an application, we’ll help you understand your options and what’s best for you.

Year	Interest Rate	Monthly Payment	Monthly Savings	Annual Savings
1	5%	$1,610.46	$385.45	$4,625.40
2	6%	$1,798.65	$197.26	$2,367.12
3	7%	$1,995.91	$0	$0

Welcome Home RateBreak 2-1 Buydown Borrower Eligibility Requirements:

Must meet eligible income requirements, called an Area Median Income (AMI) requirement. The income you are using to qualify for the loan can’t be higher than 80%. You can check your income using this look-up tool to see if you qualify.
Maximum loan amount of $350,000
Maximum loan to value of 97%
You will need a 3% down payment and 3-6% in closing costs (for a single-unit residence)
You will need a credit score above 620 and a manageable debt-to-income ratio (DTI)
Non-occupant co-signers are not allowed

Frequently Asked Questions:

What’s the difference between HomeReady and Home Possible?

HomeReady mortgages are financed through the Federal National Mortgage Association (Fannie Mae). A HomeReady loan helps borrowers with low-to-moderate income buy or refinance a home by reducing the standard down payment and mortgage insurance requirements.

The Home Possible mortgage program is back by the Federal Home Loan Mortgage Corporation (Freddie Mac) and has similar requirements and benefits as the HomeReady program.

Are HomeReady and Home Possible only for first-time home buyers?

No, you don’t have to be a first-time home buyer to be eligible. Repeat home buyers may also be eligible. If you’re a current homeowner, you can use this loan to refinance to a new rate or term. (Cash-out refinances are not allowed.)

Are HomeReady and Home Possible only for buying a single-family home?

You can buy a multifamily property with up to four units. You’ll need to live in one of the units and it must be your primary residence. Unfortunately, Welcome Home RateBreak can’t be used to buy a manufactured home.

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*The 2-1 temporary buydown offer is funded by Rocket Mortgage. Clients will receive an effective rate reduction of 2% below the note rate in the first year and 1% below the note rate in the second year. Offer only valid on HomeReady® or Home Possible® loans. Maximum loan amount of $350,000. Buydown funds may not be redeemed for cash or credit and are nontransferable. This offer cannot be retroactively applied to any loans in process or closed loans. Offer is subject to changes or cancellation at any time at the sole discretion of Rocket Mortgage. Additional restrictions/conditions may apply. This is not a commitment to lend.