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
- Pre-Approval: Seek pre-approval from a Fannie Mae-approved lender to assess financial readiness.
- Complete Homeownership Education: Borrowers must complete an online education course to prepare for the responsibilities of owning a home.
- 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.