Fannie Mae’s HomeReady Mortgage program offers low down payment, reduced mortgage insurance and no price adjustments (LLPA) translates to lower mortgage interest rates…AND is not just for home buyers. Fannie Mae’s HomeReady mortgage program is also available for home owners interested in refinancing.
The Fannie Mae HomeReady Mortgage does have income limits HOWEVER some areas are exempt from the income limits. Simply visit Fannie Mae’s HomeReady website and enter your address to see what income limits, if any, apply to your area.
You can see by this small snapshot of Burien, that two of the sections do not have income limits and that the upper rate section has an income limit of $85,100. In order to qualify for this program, if your home is located in the upper rate blue section on the above map, your gross annual income cannot exceed $85,100.
Some considerations are:
- Limited cash-out refinance only. (Don’t expect a bunch of cash back at closing).
- No price hits to rates (LLPAs) with credit scores of 680 or higher. Scores lower than 680 have a cap of 1.5% for price hits (LLPAs). THIS IS HUGE for higher loan-to-value mortgages (homes with not a lot of home equity).
- Home owner cannot own other property at time of closing.
- Home owner may be able to use “boarder income” or income from an accessory dwelling unit (aka Mother-in-law apartment)
- Available for 1-4 unit homes and condos
- Home buyer education online course required.
This program helps home owners refinance into a lower payment. It’s important to compare all of your options when considering a refinance. If you own a home located anywhere in Washington state, I’m happy to help you! Click here for a mortgage rate quote.