Fannie Mae HomeReady®

Introduction The Fannie Mae HomeReady® mortgage is designed to facilitate homeownership among low-to-moderate income individuals by offering flexible financing options, including low down payments and diverse income considerations.

Program Features

• Low Down Payments: HomeReady® allows for down payments as low as 3%.
• Diverse Income Sources: Income from household members, non-occupant borrowers, and rental units can contribute to eligibility.
• Flexible Credit Requirements: Offers potential for reduced interest rates through improved credit scores.

Eligibility Criteria

• Income Limits: Applicants must meet income limits which are typically set at 80% of the area median income for the property location.
• Property Eligibility: Includes owner-occupied residential properties, with up to four units.

Application Process

1. Pre-Approval: Seek pre-approval from a Fannie Mae-approved lender to assess financial readiness.
2. Complete Homeownership Education: Borrowers must complete an online education course to prepare for the responsibilities of owning a home.
3. Formal Application: Submit all required documentation and complete the formal loan application process.

Benefits

• PMI Cancellation: Private mortgage insurance can be cancelled after reaching 20% equity.
• Lowered Insurance Costs: Reduced mortgage insurance premiums compared to standard rates.

Conclusion The HomeReady® mortgage by Fannie Mae offers an opportunity for individuals with moderate incomes to own homes through accommodating qualification criteria and a variety of accepted income sources.

For potential borrowers, understanding these details can be crucial for leveraging this program effectively. For a more detailed exploration, you should consult the official Fannie Mae HomeReady® mortgage page.