What is the HomeReady™ Loan?
The HomeReady mortgage is designed with today’s homebuyers in mind. It was created by Fannie Mae for buyers facing financial challenges and offers lower mortgage rates than other conventional loans.
If you are facing some of these challenges, our mortgage experts can explain this new loan program to help you determine if it’s the right fit for your financial needs. Some of these challenges may include:
- Large student loans
- Can’t afford a significant down payment
- Receive income from a nontraditional source
HomeReady mortgages can be used for:
- Single family homes
- 1-4 unit homes
- Home loan refinance (no cash outs allowed)
Income can now be considered from other family members living in the home who are not borrowers. Therefore, multi-generational households are able to help the buyer qualify for the loan.
Not all of the borrowers need to reside in the home that is being purchased. For instance, parents can co-borrow on their children’s mortgage. In addition, first time and repeat buyers can get a bown payment for as low as 3%.
Other income sources like rental payments may be considered. And finally, under the HomeReady program, expanded debt to income ratios may be considered.