If you’re a minority or a Millennial, or you have a multi-generational household, and you want to buy a home, Fannie Mae has made it easier for you to get a mortgage loan through the HomeReady® Mortgage program.

 

What is the HomeReady Mortgage?

A HomeReady Mortgage is affordable, conventional home financing with mortgage insurance that can be cancelled that meets the financial and familial needs of responsible, creditworthy buyers.

 

Income limits are set by geographical areas. For properties in low-income areas, there are no income limits. For properties in high-minority areas or designated disaster areas, you can make 100% of the area’s median income. For properties in all other areas, you can make 80% of that area’s median income. For HomeReady eligibility maps for each state.

 

What are the benefits of a HomeReady Mortgage?

• You can be a first-time or a repeat homebuyer.
• You don’t have to have perfect credit. Fannie Mae requires a credit score between 680 and 700 to qualify. However, your lender may require a higher score.
• You can purchase a home with as little as a 3% down payment.
• You can use gift funds, cash-on-hand, and down payment assistance programs for the sources of your down payment.
• If your home will be a multi-generational household, the income of family members (children, parents, grandparents, etc.) may help you qualify for the loan, even if they’re not listed as a borrower on the mortgage.
• You can use a roommate’s income and/or rental income from a basement apartment or mother-in-law unit to help you qualify for your mortgage.
• You can use a co-signer’s income, even if they won’t be living with you, to help you qualify for your loan.
• You’ll have lower private mortgage insurance costs since Fannie Mae has reduced the amount of mortgage insurance coverage you’re required to have.

 

In order for you to be eligible for a HomeReady Mortgage:

1. You must not own another residential property in the U.S.
2. You must agree to complete an online home buyer education course that can be completed at your own pace and on your own schedule. There is a nominal fee for this course.

Learn More about the HomeReady Mortgage

For more information and to see if you qualify for a HomeReady Mortgage, contact the mortgage specialists at Grandview Lending in Indianapolis. Our loan experts can help you find the right mortgage that works best for your financial situation.

 

Photo credit: 123RF / Rob Marmion