What is a HomeReady™ Mortgage?
A HomeReady™ Mortgage is designed to help lenders confidently serve today’s market of credit-worthy, low- to moderate-income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities.
Help meet the diverse needs of today’s buyers with a HomeReady Mortgage, Fannie Mae’s enhanced affordable lending product.
Overview
Designed for credit-worthy, low- to moderate-income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities.
A HomeReady Mortgage lets you lend with confidence while expanding access to credit and supporting sustainable homeownership.
- Simplicity and certainty for lenders
- Improved pricing and execution
- Product features designed to align with today’s buyer demographics and support sustainable Homeownership.
Borrower Benefits
- Accessible and Sustainable Financing
- Low down payment. Up to 97% financing for home purchase with many borrowers flexibilities.
- Flexible sources of funds can be used for the down payment and closing costs with no minimum contribution required from the borrower’s own funds (1-unit properties).
- Conventional home financing with cancellable monthly MI (per Servicing Guide policy); reduced MI coverage requirement above 90% LTV supports competitive borrower payment.
- Homeownership education helps buyers get ready to buy a home and be prepared for the responsibilities of homeownership. The required training offers an easy-to-use, online course provided by Framework.
- Allows for nontraditional credit.
- Gifts and grants are permitted as a source of funds for down payment and closing costs.
- Supports manufactured housing up to 95% and HomeStyle® Renovation (approved lenders) to 95%.
Fannie Mae’s Economic and Strategic Research group reports a “demographic sea change” in the housing market, characterized by the rise of the Millennials, increased diversity, and a growing elderly population; and new household growth is being driven by traditionally underserved segments.
More Information on a HomeReady™ Mortgage
Fannie Mae
HomeReady™ Mortgage