There are many challenges new home buyers are facing. They can’t afford a large down payment, multiple student loans,or may rely on income from non-traditional sources. Due to these challenges home ownership can seem impossible. It may even have impacted their ability to buy a home in the past. So, Fannie Mae created the Fannie Mae Home Ready mortgage. It is an enhanced affordable loan created to meet the varied financial and familial needs of trustworthy buyers.
Know the Features & Flexibilities
The Fannie Mae Home Ready mortgage addresses common financial challenges and offers expanded eligibility guidelines, such as:
- Offering a 3% down payment option. First-time and repeat home buyers can purchase a home with a down payment as low as 3%.
- Supporting extended families. Any family member who will not be on the mortgage will have their income considered. This means in multi-generational households, the income of children, grandparents, other extended family members and non-relatives 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. Income limits may apply.
- 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).
Home Ownership Education Requirement
HomeReady mortgage has a home ownership education requirement to help buyers prepare for the responsibilities of buying and owning a home. Buyers can complete an online home ownership course to fulfill the requirement. One-on-one home ownership advising (i.e., through a HUD-approved counseling agency) may also be an option for buyers who could benefit from personalized assistance. If you seek one-on-one advising, reach out to our office beforehand to confirm that you’ll meet the Home Ready mortgage education requirement.
For more details and to see if you qualify for a HomeReady Mortgage, contact us today.