The HomeReady Mortgage is a mortgage program created by Fannie Mae intended to help low-to-moderate income borrowers with good credit buy or refinance a home.
Here are more details about the HomeReady Mortgage:
- you do not need to be a first-time home buyer.
- home buyer education required (online).
- reduced down payment
- reduced private mortgage insurance premiums
- reduced price hits (LLPA’s) to interest rates.
- no minimum borrower contribution. Funds for down payment can come from gifts or Community Seconds.
- rental income from accessory dwelling units (aka mother-in-law apartments) may be considered for qualifying.
- rental income from a boarder may be considered. The boarder (aka room-mate) must be existing with documented rental income of shared residency with the borrower.
- available for 1 – 4 unit homes. There are different requirements for 2-4 unit homes.
- rental income may be used for 2-4 unit homes. Borrower must occupy one unit.
- income from a non-borrower household member (someone who lives in the home and is not on the loan application) may be considered as a compensating factor for qualify.
- income from a non-occupant borrower (aka a co-signer) may be allowed. The non-occupant borrower’s income will be subject to any applicable income limits.
Income limits vary depending on what census tract the property is located. Use this link to determine the income limits for Home Ready.
This is really a great program for borrowers to consider and I’m pleased to be able to offer HomeReady to my clients.
If you are interested in buying or refinancing a home located anywhere in Washington State, I’m happy to help you! Click here for a mortgage rate quote or here to start the prequalification process.
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