We’re very pleased to add Fannie Mae’s innovative, new HomeReady™ Mortgage product to our menu of affordable loan programs!
Many borrowers in today’s marketplace need a flexible, sustainable, affordable mortgage loan product. The new program replaces Fannie Mae’s MyCommunityMortgage® and offers improvements over the older program.
Here are a few of the new product’s features that may offer attractive benefits for your clients:
- A down payment of as little as 3 percent is required, but there is no minimum contribution required from the borrower’s own funds for the down payment and closing costs, when purchasing a one-unit property.
- Conventional home financing with cancellable monthly Mortgage Insurance (MI); lower MI coverage requirement than standard for Loan-To-Value (LTV) ratios greater than 90%.
- An easy-to-access, online education course, called Framework, prepares borrowers for the home buying process and provides support after the home purchase.
This mortgage option also reflects support for extended family households. Income from non-borrower household members can be considered when calculating debt-to-income ratios. Other income sources allowed include boarder income and rental income from an accessory dwelling unit.
HomeReady is available in communities and neighborhoods throughout the U.S.
Changing demographics and borrower needs are two of the major reasons Fannie Mae revamped their affordable loan product.
- HomeReady is available to borrowers at any income level for properties in designated low-income census tract.
- For properties in high-minority census tracts or designated natural disaster areas, it is available to borrowers at or below 100% of area median income (AMI).
- For properties in remaining census tracts, borrowers must have an income at or below 80% of AMI.
Fannie Mae estimates that about half of census tracts will be subject to the 100% AMI limit or have no income limit.
Let Us Review Our Menu with Your Clients
Equity Mortgage Loan Originators are eager to discuss the HomeReady Mortgage in more detail with you and your clients. At Equity Mortgage Group, helping our customers and our business partners to succeed is part of our way of life.
™ HomeReady™ is a trademark of Fannie Mae. ® MyCommunity Mortgage®is a registered trademark of Fannie Mae.
* Press release. “Fannie Mae Announces Improved Affordable Lending Product.” Fanniemae.com. 25 Aug 2015. Web. 08 Dec 2015. http://www.fanniemae.com/portal/about-us/media/corporate-news/2015/6283.html
** HomeReady Mortgage™ FAQs. Fanniemae.com. Web. 08 Dec 2015. https://www.fanniemae.com/content/faq/homeready-faqs.pdf
Jan 08, 2016