HomeReady Mortgages from Fannie Mae
Fannie Mae recently launched HomeReady Mortgage, a program to make buying a home more flexible for families with a low or moderate income.
What is HomeReady Mortgage
The HomeReady Mortgage program is designed to help buyers who have good credit, but who may not have enough money for a down payment. It's designed to have a high loan to value ratio with low rates and reduced mortgage insurance costs.
More flexibility with how you include incomes
The traditional one or two-income house just doesn't fit for everyone. With the HomeReady program, you can be a little more flexible in who's income you include in your mortgage application, which is especially helpful if you have more than one generation living in the same house.
- Other adults living with you, like an adult child, who also contributes tot he house.
- Family and friends who might be helping you pay the mortgage, but don't live with you.
- Are you renting out your basement apartment to help pay the mortgage? You can count that as part of your income under the HomeReady program.
Online education:
You'll have access to an online program that will help you get ready to buy a home and continue to give you support after you close on your house.
Do I qualify
In order to qualify for the program, you need:
- Credit score of 620 or higher
- Be below 100 percent of the area median income
- Want to buy a single-family home as a primary residence
- Have a 3% down payment (can be from gifts, grants, or cash on hand)
HomeReady mortgage insurance
Any time you buy a home without putting 20% down, you have to pay mortgage insurance--and a HomeReady mortgage is no exception. The good news is the program keeps these fee relatively low and allows it to be canceled once you reach 80% loan to value on your home.
Does HomeReady sound like the right program for you? Learn more at the Fannie Mae website.