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.
One of the most important decisions you will make during the home buying process is finding the right mortgage product to finance your home. However, many homebuyers face financial challenges that make homeownership seem impossible. Some can’t afford a large down payment, others may have multiple student loans, while others may rely on income from non-traditional sources.
The SeanZ Team understands these challenges you may be facing and we’re here to help!
What is the HomeReady™ Mortgage?
Fannie Mae created this affordable loan, which is designed to meet the diverse financial needs of low-income and low-credit-score buyers. The HomeReady mortgage is a conventional loan that offers lower mortgage insurance requirements and down payment options.
Some of the benefits of HomeReady include:
- Ability to accept money from family or friends to put towards your down payment
- Ability to cancel mortgage insurance once 20% of the home’s value is paid down
- Lower down payment requirements – as little as 3% of the home’s value
- Allows use of alternative credit to help you qualify
- Use HomeReady to refinance your current loan
Who Qualifies for a HomeReady Loan?
To quality for HomeReady, you will need to meet these three main requirements:
- A minimum credit score of 620 – Your income can be on the low-end, but you will still need to have a minimum credit score of 620. Other conventional loan products have higher credit score requirements, so the reduced minimum score can help you get the financing you need. It also allows alternative credit history to be considered to meet this qualification.
- Cannot own any other residences – While you don’t need to be a first-time homeowner to qualify, you cannot currently own a home with this type of mortgage.
- Homeownership education courses – You will need to attend these courses, which will help you prepare for the financial challenges of owning a home. HomeReady requires 4-6 hours of approved courses.
Ask the Better Rate Mortgage team
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.
