HomeReady® Mortgage

Highlights of the HomeReady® Program: 
  • Minimal down payment – sometimes as low as 3%
  • Required homebuyer education program (available online)
  • Ability to use flexible sources for down payment and closing costs (gifts, grants,
    or Community Seconds)
  • Cancellable monthly mortgage insurance

What is HomeReady®?

This program was launched by Fannie Mae in the hopes of helping more Americans with their dream of homeownership and to accommodate changes in borrower demographics. HomeReady® is offered through and provides extra financial flexibility for homebuyers who may not fit into the traditional mortgage mold. The program gives creditworthy borrowers an opportunity to purchase a home when they have low or moderate incomes. HomeReady™ also offers more competitive pricing compared to other traditional mortgage program.*

How the HomeReady® program works:

The HomeReady® loan is very similar to conventional mortgages. However, it is geared towards homebuyers who may not have enough money available to cover the cost of a down payment and closing costs. This down payment can sometimes be as low as 3%. Income from non-occupant borrowers can be included in your total qualifying income; however if you choose this option, you will be required to make a 5% down payment. Borrowers can also include rental/boarder payments (from relatives or non-relatives) as part of their income, as long it is documented.*

When applying for a HomeReady® mortgage, it is required that at least one borrower complete a homeowner education course. The course helps provide home buyers with a better understanding of the process of purchasing and owning a home and gives borrowers tools to succeed. This course is offered through the Fannie Mae approved program, Framework. If a borrower has already finished a homeownership education class offered by a HUD approved agency within six months of applying and before September 30, 2016, then the education requirement is met.

You could benefit from the HomeReady® loan program if you:

  • Have low to moderate income
  • Need flexible sources for your down payment and/or closing costs
  • Have a co-borrower who will not be living in the home
  • Receive income from boarders

If you or someone you know are interested in a HomeReady® loan, we can help! Contact one of our Licensed Loan Originators today!

 

Related Products: Conventional Mortgage, USDA, FHA

For more information, visit the Fannie Mae HomeReady® website.

* Product information effective 2/3/16. Certain restrictions apply. Guidelines and product availability subject to change at any time.
  Subject to income limitations. Requires homebuyer education per guidelines.