Flexible home lending by Fannie Mae: HomeReady™
In order to meet the needs of today’s buyers , Fannie Mae has rolled-out another buyer-friendly mortgage loan tool called HomeReady™. While the program is not much different than most flexible home buyer programs, you may find the down payment flexibility helpful.
In an effort to educate you about flexible mortgage loan tools Guaranteed Rate presents Fannie Mae’s HomeReady™ mortgage program.
With HomeReady™, the most program flexibility lies in a one unit primary residence purchase or refinance. Also, qualifying requirements will vary from lender to lender so be sure and speak with your licensed mortgage professional about your specific needs.
Down Payment Requirement
Down payment requirements will depend on the type of property and loan program (i.e., fixed or adjustable rate) you choose.
*Manufactured housing and co-ops are allowed by Fannie Mae; however, you’ll need to discuss available options with your chosen mortgage professional.
Need help with your down payment?
Fannie Mae is now offering the following innovative loan features.
- Community Seconds® can be used for your down payment and all closing costs allowing you to finance up to 105% of the value of the home.
- If your debt-to-income ratios are too high (these determine how much house you can afford), income from a household member, who is not on the loan, can be used to help you qualify.
- Income from a co-borrower who is on the loan with you, but will not occupy the home can also be used to qualify. (Loan-to-value restrictions apply)
- Boarder income you receive directly from an individual who has lived with you for, at least, the most recent 9 months. You must be able to document the payments made directly to you.
One additional feature, rental income from an accessory unit (i.e., basement apartment), is offered; however, you’ll need to speak with your chosen mortgage professional as this feature may not be offered by every lender.
Minimum Credit Score
The minimum credit score for the purchase or refinance of a one unit home is 620. The purchase or refinance of a 2-4 unit home will require a 640 credit score.
Monthly Mortgage Insurance
Mortgage insurance will be required; however the coverage amount has been reduced for the HomeReady program.
Home Ownership Education
To take advantage of the HomeReady™ program, you’ll need to obtain a certificate of completion from a comprehensive home ownership education program. Options for counseling include a course offered by Framework or any HUD approved counseling agency.
To take advantage of the HomeReady™ product, contact your chosen mortgage professional today.
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