Highlights of the HomeReady® Program:
- Minimal down payment – sometimes as low as 3%
- Required homebuyer education program (available online)
- Ability to use flexible sources for down payment and closing costs (gifts, grants,
or Community Seconds)
- Cancellable monthly mortgage insurance
What is HomeReady®?
This program was launched by Fannie Mae in the hopes of helping more Americans with their dream of homeownership and to accommodate changes in borrower demographics. HomeReady® is offered through and provides extra financial flexibility for homebuyers who may not fit into the traditional mortgage mold. The program gives creditworthy borrowers an opportunity to purchase a home when they have low or moderate incomes. HomeReady™ also offers more competitive pricing compared to other traditional mortgage program.*
How the HomeReady® program works:
The HomeReady® loan is very similar to conventional mortgages. However, it is geared towards homebuyers who may not have enough money available to cover the cost of a down payment and closing costs. This down payment can sometimes be as low as 3%. Income from non-occupant borrowers can be included in your total qualifying income; however if you choose this option, you will be required to make a 5% down payment. If you have parents, grandparents, children or other family members who want to include their income on the loan application, they are able to do so. Borrowers can also include rental/boarder payments (from relatives or non-relatives) as part of their income, as long it is documented.*
When applying for a HomeReady® mortgage, it is required that at least one borrower complete a homeowner education course. The course helps provide home buyers with a better understanding of the process of purchasing and owning a home and gives borrowers tools to succeed. This course is offered through the Fannie Mae approved program, Framework. If a borrower has already finished a homeownership education class offered by a HUD approved agency within six months of applying and before September 30, 2016, then the education requirement is met.
You could benefit from the HomeReady® loan program if you:
- Have low to moderate income
- Need flexible sources for your down payment and/or closing costs
- Have a co-borrower who will not be living in the home
- Receive income from boarders
If you or someone you know are interested in a HomeReady® loan, we can help! Contact one of our Licensed Loan Originators today!
For more information, visit the Fannie Mae HomeReady® website.
* Product information effective 2/3/16. Certain restrictions apply. Guidelines and product availability subject to change at any time.
Subject to income limitations. Requires homebuyer education per guidelines.