HomeReady is a first mortgage, purchase money, or limited cash-out refinance transaction offered by Fannie Mae that are meant to help creditworthy, low- to moderate-income borrowers purchasing one-to-four unit properties used as their principal residence. A HomeReady mortgage reduce the typical down payment and mortgage insurance requirements, but theyre also more flexible about allowing contributions from other people. This makes HomeReady a great choice if youre relying on others to help fund your California home purchase.
Benefits of the HomeReady Mortgage Program
- Available on purchase and no cash out refinance transactions.
- Program is not limited to California first-time homebuyers, any eligible California homebuyer can apply.
- Ability to use flexible sources for down payment and closing costs (gifts, California grants, or a Community Second)
- No up-front FHA mortgage insurance premium (MIP) and potentially lower ongoing private mortgage insurance (PMI) cost as compared to the ongoing FHA MIP cost.
|TERMS||MAX LTV/CLTV/HCLTV||DPA & SECONDARY FINANCING AVAIBLABLE||OCCUPANCY||TARGET AREA||1ST TIME HOMEBUYER REQUIRED||INCOME LIMIT||MAX SELLER CREDIT|
|PURCHASE & R/T REFI: 1 UNIT=97/105/97% 2 UNIT=85/105/85% 3-4 UNITS-75/105/75% see notes in program HIGH BALANCE NOT ALLOWED
||COMMUNITY SECONDS ALLOWED
||OWNER OCCUPIED ONLY
||YES Income limits are detirmind by property address & location.
YES Income from all borrowers who will be listed on the mortgage note must be counted, to the extent that the income is considered in evaluating creditworthiness for the loan. For determining loan eligibility, refer to the AMIs on Fannie Mae’s website and not other published versions (such as AMIs posted on huduser.org). The total annual qualifying Income may not exceed 100% of the AMI for the property location, except there is no income limit for properties located in low-income census tracts, defined as those census tracts where the median tract income is no greater than 80% AMI. The income of all borrowers cannot exceed the published CalHFA income limits for the county in which the property is located. When multiple CALHFA loan programs are used in combination, the most restrictive income limits will apply. Got to https://homeready-eligibility.fanniemae.com/homeready/
|TLTV <=75% = 9% TLTV 75.01%-90% = 6% TLTV >=90% = 3% Concessions/contributions are acceptable per SPFC Conventional guidelines
HomeReady Mortgage Program - Down Payment Assistance Program is available in the following areas/cities
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