Home Ready Mortgage Program by Fannie Mae
Most first time home buyer faces financial challenges such as they can’t afford a large down payment, they may have student loan or may need parents and other family member to help out when buying a home. They are Willing, Ready but un-Able to buy because financial situation. If you are in this situation, HomeReady Mortgage might be able to help you from dreaming a home to owning owning a home.
Photo by RDNE Stock project from pexel
HomeReady is a Fannie Mae program that provides affordable home financing for low-to moderate-income borrowers, with expanded eligibility for homes in designated low-income, minority, and disaster-impacted communities.
HomeReady Program Benefits
HomeReady mortgage addresses common financial challenges and offers expanded eligibility guidelines,
such as:
– Down Payment as low as 3%. Ideal for home buyer who can’t afford to make a large down payment.
– Supporting extended families. For the first time, income from a household member who is not a borrower (i.e., they won’t be on the mortgage) will be considered. This means—in multi-generational households, the income of children, grandparents, or other extended family members may help buyers qualify for a HomeReady mortgage
– Allowing co-borrower flexibility. All borrowers do not have to reside in the property. For example, parents, who won’t be living in the home, can be co-borrowers on the loan to help their children qualify for a mortgage and purchase a home
– Accepting additional income sources. Rental payments may be considered as another allowable income source to help qualify a buyer (i.e., rental payments from a basement apartment). Income limits may apply
– Convenrtional Financing with private mortgage insurance (PMI) that may be eligible for cancellation when home equity reaches 20%
HomeReady Program Eligibility
– No first-time homebuyer requirement; however, homebuyer education is mandatory
– Income eligibility is aligned with housing goals requirements for low-income, high-minority, and designated disaster areas
– Innovative feature that allows income from a non-borrower household member to be considered in the qualifying debt-to-income ratio
– Non-occupant borrowers (like a parent) are permitted
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ and surrounding area, we hope you will consider us. Contact us today for complimentary consultation.
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