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.
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.