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.*
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. 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.
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.