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Earned Equity Program

The buyer fell out. They still want the house.

A path to ownership for the borrower who can't qualify today. A government entity purchases the home, your borrower moves in under a lease or seller-financing agreement, builds payment history, and refinances into their own loan when they qualify.

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Files EEP can rescue

  • Credit from 580, lower considered case by case
  • Self-employed and bank-statement income
  • ITIN and DACA borrowers
  • Buyers whose financing fell through before closing

How it works

Four steps from "declined" to moving in

  1. The home is purchasedA government entity buys the home your borrower picked.
  2. Your borrower moves inUnder a long-term lease or seller-financing agreement, with 3.5% down.
  3. They build historyOn-time payments start the month after closing.
  4. They refinanceWhen they qualify, they refinance into their own mortgage.

Program facts

The details

Earned Equity Program
TransactionPurchase only, primary residence
Credit580+, lower scores considered case by case
Who qualifiesUS citizens, permanent residents, ITIN, DACA; employed or self-employed
IncomeW-2, 1099, self-employed, or bank statements
Down payment3.5%, gift funds allowed
Housing history12 months required
Property1 to 2 units: SFR, townhome, PUD, modular, manufactured (not single-wide), FHA-approved condo

What it costs your borrower

A real example

On a home around $285,000, an illustrative cost estimate came to about $20,000 total upfront: the 3.5% down payment and closing costs, less seller credits, plus program fees and the first payment. Every borrower receives a full cost disclosure before they commit.

The Earned Equity Program is not an FHA or HUD product. The lease or seller-financing arrangement is separate from the FHA loan. Figures are illustrative and vary by property and borrower. Availability can vary by state and channel, so ask Cheryl before quoting it to a borrower.

Have a file that fits?

Send the scenario. You'll get a straight yes, no, or what it would take.

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