Fannie May's Home Ready Loan Program
We've got great news for buyers with lower and moderate incomes! Thanks to a new product from Fannie Mae, creditworthy borrowers with lower incomes can now access an affordable mortgage.
Low down payment: Up to 97% LTV financing for home purchases.
Flexible sources of funds:
- Can be used for the down payment and closing costs with no minimum contribution required from the borrower’s own funds (1-unit properties).
- Income from non-borrower household members considered as a compensating factor in Desktop Underwriter® (DU®) to allow for a debt-toincome (DTI) ratio >45%, up to 50%.
- Rental unit and boarder income.
- Non-occupant borrowers, such as a parent.
- Borrower is NOT required to be a first-time buyer.
- Gifts, grants, Community Seconds®, and cash-on-hand permitted as a source of funds for down payment and closing costs.
Affordable and cancellable monthly MI: Reduced MI coverage requirement above 90% LTV; cancellable MI per Servicing Guide policy.
Homeownership course: The online Framework® course prepares borrowers for sustainable homeownership; other education and advising options are available.
Nontraditional credit is allowed: Supports manufactured housing up to 95% and HomeStyle® Renovation (approved lenders) up to 95%
If you're interested in learning more about the Home Ready program or would like to see if you're eligible, contact John here or by phone at (512) 524-8310.