If you want to make buying your first home a reality, there are numerous programs that are now available to help you accomplish just that. The HomeReady mortgage program offers an affordable home loan that is designed to accommodate the diverse financial needs of creditworthy, responsible buyers. You may qualify for features such as a low down payment and a fixed mortgage.
How HomeReady Works
HomeReady offers a fixed rate mortgage up to $453,100 with a lower down payment. The program includes flexible income requirement guidelines as well.
Qualifying for a HomeReady Mortgage
The criteria to qualify for a HomeReady mortgage are:
- Fixed rate mortgage loan of up to $453,100
- A single family accessory unit or income from a renter may be used to qualify
- Single family units, condominiums, or PUDs may qualify for the owner’s primary residence
Benefits of the Fannie Mae Mortgage Program
In addition to the low down payment and flexible income qualification guidance, a community seconds loan or gift funds may be used towards the down payment. This means that not all of the down payment must come from your personal funds. In addition, you may be able to use a co-borrower’s income, even if they are not occupants of the primary residence, to help qualify for the mortgage. HomeReady may have other options such as reduced mortgage insurance, no upfront fees for mortgage insurance, and cancellation options set by Fannie Mae guidance.
Flexibility and Features
The HomeReady program addresses many of the most common financial challenges home buyers face by offering flexibility and these features:
- A lower percent down payment option. Both first-time and repeat buyers may qualify for the mortgage with only 3 percent of the home purchase price as down payment.
- Flexibility for co-borrowers. Not all of the borrowers are required to live in the primary home. This means that parents or other individuals can help you qualify for the loan, although some income limits may come into play.
- Non-conventional income sources. You may be able to use rental income as a qualifying source of income, such as rental payments from a granny flat.
The HomeReady mortgage program also requires the completion of a home ownership education course to help you prepare for the obligations ahead. You may take a course online, or you may seek one-on-one personalized assistance to meet the education requirement.
The HomeReady program offered by Fannie Mae may be just the right program for you. If you need a low down payment option, co-borrower options, and flexible income guidelines, you will want to learn more about this particular mortgage offering. Go to ubermortgage.com to learn more about this and other mortgage products that can help you get in your dream home.