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.