One of the latest updates in the Mortgage world is the HomeReady loan program. This program was created by Federal National Mortgage Association (Fannie Mae). Home ready loans were created to be an affordable means to a mortgage for creditworthy borrowers who may have a diverse range of financial situations. This is done through the flexibility of fund source for the borrower. Unlike most conventional loans the HomeReady loan offers opportunities for the borrower to accept funds from a co-borrower, other household members, and also public or granted funds.
This mortgage is known to be a flexible financial program with reasonable and affordable rates. The HomeReady loan has be growing in popularity in the new year especially with the new home buyer population, millennials. With changing demographic in the homebuyers market comes a change that is the HomeReady program which for the qualified first-time home buyer can offer as low as 3% down on a home. The modified eligibility requirements make home owning more available than ever before.
- The Borrower must live on the property as a primary residence
- Borrower must complete the online homeownership training course and receive a certificate of completion.
- The property must be on the list of eligible home for the HomeReady loan program.
The HomeReady Program has many alterations that make the loan available to an expanding group to include low income families, or families that live in minority or disaster impacted areas. Some of the benefits of a HomeReady Programs Include:
Low Down Payments
HomeReady Loans offer some of the most competitive rates on down payments with up 97% of your home financed. There is no contribution required from the borrower.
Flexible Fund Source options
The down payment and the closing costs of the HomeReady mortgage can be paid with borrowed, public, or gifted funds.
Includes multi-generational homes
For the first time, income from a household member that is not the borrower will be able allowed for contribution to the mortgage payments. This means that multi-generational households can help the borrowers qualify and pay for a HomeReady Mortgage.
Not all borrowers have to reside on the property. This allows for a parent, who already has a home, to reside in their own residence while helping a child qualify and afford their mortgage.
MI that is Cancellable
Once a borrower’s MI (Mortgage Insurance) drops below 78% the insurance is dropped. However, the borrower can also request to cancel the Insurance when it drops below 80%.
Home Ownership Training
Since the home Ready programs is made for first time homebuyers there is a online Homeownership training course. This course helps train and prepare buyers for homeownership.
If you think the HomeReady mortgage programs is right for you or a family member make sure you shop around for a lender who is knowledgeable about the HomeReady program. Do your research and take the time to find the best rates to get into your dream home with a HomeReady program. To see if you qualify click below and talk to a lender today.