FNMA HomeReady

Get Pre-Qualified Today & Shop with Confidence!

FNMA HomeReady

Get Pre-Qualified Today
& Shop with Confidence!

The Lowdown on HomeReady…

This can be an ideal program for borrowers who can afford the monthly mortgage payments, but don’t have enough available funds for a great deal of up front expenses such as a large down payment, or substantial closing costs.

Some conventional mortgage loans don’t allow borrowers to apply financial gifts from family members as down payments. Or if they do, it’s a restricted amount, which means a good portion has to come from the borrower’s own pocket. This can put homeownership out of sights for some. Because this program allows gifts, grants, and cash-on-hand as a source of funds for the down payment and closing costs, creditworthy low- to-moderate income borrowers have a pathway to homeownership, which is a key means for building wealth and economic opportunity.

The Lowdown on
HomeReady…

This can be an ideal program for borrowers who can afford the monthly mortgage payments, but don’t have enough available funds for a great deal of up front expenses such as a large down payment, or substantial closing costs.

Some conventional mortgage loans don’t allow borrowers to apply financial gifts from family members as down payments. Or if they do, it’s a restricted amount, which means a good portion has to come from the borrower’s own pocket. This can put homeownership out of sights for some. Because this program allows gifts, grants, and cash-on-hand as a source of funds for the down payment and closing costs, creditworthy low- to-moderate income borrowers have a pathway to homeownership, which is a key means for building wealth and economic opportunity.

What is the HomeReady Loan?

Designed to help creditworthy low-to-moderate income households overcome the obstacles to affordable homeownership, this program offers borrowers an opportunity to build wealth and strengthen communities by providing affordable fixed rate loans with more flexible underwriting requirements.

The FNMA HomeReady loan offers some of the most important elements that borrowers facing economic challenges need like no income limits in low-income census tracts, lower MI coverage, and a fixed-rate fully amortizing product, which offers rate and payment (principal and interest) stability for borrowers.

What is the
HomeReady Loan?

Designed to help creditworthy low-to-moderate income households overcome the obstacles to affordable homeownership, this program offers borrowers an opportunity to build wealth and strengthen communities by providing affordable fixed rate loans with more flexible underwriting requirements.

The FNMA HomeReady loan offers some of the most important elements that borrowers facing economic challenges need like no income limits in low-income census tracts, lower MI coverage, and a fixed-rate fully amortizing product, which offers rate and payment (principal and interest) stability for borrowers.

What is required for a HomeReady Loan?

The FNMA HomeReady loan tackles the common financial challenges that many low-to-moderate borrowers face and offers increased flexibility like considering the income from a non-borrower household member, including children, grandparents, and other extended family members. Non-relatives may also help buyers financially qualify for this mortgage. In addition, the program allows for co-borrowers who don’t live in the property to help a buyer qualify for a mortgage.

What’s required for
HomeReady Loans?

The FNMA HomeReady loan tackles the common financial challenges that many low-to-moderate borrowers face and offers increased flexibility like considering the income from a non-borrower household member, including children, grandparents, and other extended family members. Non-relatives may also help buyers financially qualify for this mortgage. In addition, the program allows for co-borrowers who don’t live in the property to help a buyer qualify for a mortgage.

What are the benefits of a HomeReady Loan?

Low Down Payment: This loan is attractive to potential homebuyers with low to moderate income levels because it offers a down payment requirement as low as 3% for a one unit home with a fixed rate mortgage. The down payment needed is higher for adjustable rate financing and multi-unit properties.

Flexible Sources of Funds: Proof of sourced or seasoned funds aren’t required for the FNMA HomeReady loan down payment and closing costs. Borrowers can use gifts, grant funds, and cash on hand as source of necessary funds.

Homeownership Course: Loans closed on or after December 7, 2019 require the online Framework® course for this program – for at least one borrower – only if all occupying borrowers are first-time homebuyers (regardless of LTV). The course is beneficial to borrowers by helping them learn about sustainable homeownership, as well as helping them understand the loan process so they are better prepared and know what to expect as they move from home search to loan application to closing.

What are the
benefits of a
HomeReady Loan?

Low Down Payment: This loan is attractive to potential homebuyers with low to moderate income levels because it offers a down payment requirement as low as 3% for a one unit home with a fixed rate mortgage. The down payment needed is higher for adjustable rate financing and multi-unit properties.

Flexible Sources of Funds: Proof of sourced or seasoned funds aren’t required for the FNMA HomeReady loan down payment and closing costs. Borrowers can use gifts, grant funds, and cash on hand as source of necessary funds.

Homeownership Course: Loans closed on or after December 7, 2019 require the online Framework® course for this program – for at least one borrower – only if all occupying borrowers are first-time homebuyers (regardless of LTV). The course is beneficial to borrowers by helping them learn about sustainable homeownership, as well as helping them understand the loan process so they are better prepared and know what to expect as they move from home search to loan application to closing.

Who is eligible for HomeReady Financing?

The HomeReady mortgage is an ideal solution for low-to-moderate income borrowers looking to gain economic security through owning a home. One of the main eligibility requirements require income not exceeding 80% AMI for the property’s location (includes properties in low-income census tracts).

Borrowers who occupy the Property may not have an ownership interest in any other residential dwelling at the time of closing. This restriction does not apply to a non-occupant co-borrower. A manufactured home, regardless of the type of land ownership, is considered a residential dwelling for this purpose. Ownership in a timeshare, either as a deeded interest or a right-to-use arrangement, is not considered ownership in a residential dwelling for this purpose.

At least one borrower must complete a Fannie Mae approved online pre-purchase homeownership education program through Framework, and receive a referral to housing counseling prior to the close of the loan.

The HomeReady Loan Process

Here’s how our home loan process works:

  • Complete our simple FNMA HomeReady Mortgage Qualifier
  • Receive options based on your unique criteria and scenario
  • Compare mortgage interest rates and terms
  • Choose the mortgage loan offer that best fits your needs

If purchasing a home, you can now start shopping with confidence with an Elite Realtor to find your perfect home.

Who is eligible for
HomeReady Financing?

The HomeReady mortgage is an ideal solution for low-to-moderate income borrowers looking to gain economic security through owning a home. One of the main eligibility requirements require income not exceeding 80% AMI for the property’s location (includes properties in low-income census tracts).

Borrowers who occupy the Property may not have an ownership interest in any other residential dwelling at the time of closing. This restriction does not apply to a non-occupant co-borrower. A manufactured home, regardless of the type of land ownership, is considered a residential dwelling for this purpose. Ownership in a timeshare, either as a deeded interest or a right-to-use arrangement, is not considered ownership in a residential dwelling for this purpose.

At least one borrower must complete a Fannie Mae approved online pre-purchase homeownership education program through Framework, and receive a referral to housing counseling prior to the close of the loan.

The HomeReady
Loan Process

Here’s how our home loan process works:

  • Complete our simple FNMA HomeReady Mortgage Qualifier
  • Receive options based on your unique criteria and scenario
  • Compare mortgage interest rates and terms
  • Choose the mortgage loan offer that best fits your needs

If purchasing a home, you can now start shopping with confidence with an Elite Realtor to find your perfect home.

Get Your FREE Loan Quote Now!

Get Your FREE
Loan Quote Now!

Whether you’re buying a new home, refinancing, looking for a cash-out, or just have questions about the process, our Elite Team of Mortgage Professionals will help you find the right mortgage solution!

Whether you’re buying a new home, refinancing, looking for a cash-out, or just have questions about the process, our Elite Team of Mortgage Professionals will help you find the right mortgage solution!

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