Which Home Loan Is Right for You?

Feature	Rate/Term Refi	Cash-Out Refi	HomeReady (Fannie Mae)	Home Possible (Freddie Mac)
Max LTV / CLTV	95%	80%	97% (up to 105% w/ Community Seconds)	95%
Purpose	Lower rate/term, no new debt	Access cash from home equity	Refinance for low-to-moderate income	Refinance for low-to-moderate income, low down payment
Loan / Cash Back	Pays off existing lien; cash back ≤ $2,000	New loan > balance, capped by LTV	Limited cash-out ≤ old balance + closing	Limited cash-out ≤ old balance + closing
Income Limits	None	None	≤ 80% Area Median Income	≤ 80% Area Median Income
Credit Score	620+	620+	620+	620+
Property Type	Primary, second, investment	Primary, second, investment	Primary; 1–4 units, condos, co-ops, manufactured	Primary; same as HomeReady
Mortgage Insurance	Standard PMI if LTV > 80%	Standard PMI if LTV > 80%	Reduced MI	Reduced MI
Best For	Rate/term savings, stability	Cash needs	Limited equity borrowers, flexible income	Limited equity borrowers