The HomeReady mortgage Is a flexible loan that was designed by Fannie Mae to accommodate the divers needs of today’s borrowers. The Homeready loan is aimed at “creditworthy low-to-moderate modest income borrowers”, (Fanniemae.com). According to Mortgageinfo.com the creating of this loan was “due to the expanding eligibility for financing homes in low income, minority, or disaster-impacted areas” (Mortgageinfo.com).
Low Payments
The HomeReady Loan was designed with low down payments in mind, with as little as 1% down required by the borrower. The HomeReady mortgage has a lower monthly payment and requires a lower credit score than other similar types of loans. Another benefit of the HomeReady mortgage is that the borrower can use a variety of income sources, which can include gifts, assistance programs, and/or cash on hand for the down payment.
Education Requirement
One of the requirements of the Homeready mortgage is that “at least one of the borrowers on each HomeReady purchase transaction must complete the Framework online education program” (Fanniemae.com). This educational requirement is required to help to the borrowers gain an essential understating of the complexities of sustainable homeownership. There is a one-time fee of $75 for the course, for more information about the Framework program and exceptions visit: https://homeready.frameworkhomeownership.org/
Benefits and Features
The HomeReady mortgage is a flexible loan that is very competitively priced, that typically meets or beats standard loan pricing. Borrowers can use a Co-Signer if your Debt to Equity ratio is over 36% and you can use multiple sources for the down payment. The HomeReady mortgage has low down payments with up to 97% LTV financing for home purchases.
We understand that each borrower is unique and that you may have questions about the HomeReady mortgage requirements and benefits. Contact us today to talk to a specialist to discuss your specific needs and questions. If you’re ready to apply now, then click the link below.
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