As mortgage professionals, we know the challenges individuals and families face when shopping for a home to purchase. Most mortgage programs ask for large down payments that many buyers cannot afford, or buyers might have other debt obligations, such as student loans, they are struggling to payoff. Income can be a challenge with many borrowers getting income from sources that do not meet traditional underwriting guidelines, such as from family members.
HomeReady mortgage program might be the solution
At MortgageDepot, our professional mortgage loan originators might have a solution for the challenges some homebuyers are facing. The government-backed HomeReady mortgage program addresses many of the challenges confronting buyers in the market for a new home. The HomeReady program from Fannie Mae includes the following features:
- Down payments as low as 3 percent
- Not restricted to first-time buyers
- Income from household members who are not borrowers can be taken into consideration for underwriting purposes
- Co-borrowers are not required to reside in the property being purchased
- Nontraditional sources of income, such as rental income from an apartment in the home being purchased, may be taken into consideration for underwriting purposes
- Applies to 1-4 unit owner-occupied homes
- Borrower’s annual income cannot exceed 100 percent of the median income for the area in which the property is located
- Borrower’s income limit does not apply to properties purchased in a designated low-income census tract
- Borrowers with FICO scores of 680 or better can purchase with a loan-to-value greater than 80 percent
The liberal guidelines of the HomeReady program offer hope for buyers who might not have otherwise qualified for conventional loans to purchase their home.
Other eligibility requirements under the HomeReady program
Our mortgage loan originators can help buyers through the application process for the HomeReady program as long as they meet the following eligibility requirements:
- Buyers must complete an online homeownership course or participate in a homeownership advisement program through a counseling agency approved by the U.S. Department of Housing and Urban Development
- Buyers cannot own another residential property at the time they apply for the HomeReady program
We can review the program and the eligibility requirements with you in case you are not sure if you would qualify.
MortgageDepot can help you through every step of the process
Whether someone is buying a home or a condominium, our mortgage loan consultants can help you through the process. We do the application with you and submit it to lenders to obtain the most competitive pricing available. Our role is to be with you at every stage of the process. Our job is not done until you own your new home.