Hoping to Buy a Home? Have Student Loans?
Consider “HomeReady” Financing from Fannie Mae …
- Low Credit Scores
- Low Down Payments/ Limited Assets
- Unstable Employment Histories
- Forgiving Credit Scores
- Reduced Private Mortgage Insurance(PMI) rates
- PMI is cancellable, per Servicing Guide policy
- Interest Rates as favorable, if not lower, than traditional Conventional Loans
- Flexible Income Guidelines allowing:
A. Non-Borrowing Spouse
- Flexible Funds for Down Payment and Closing Costs, allowing Gift Money and Seller-Paid Credits for Closing Costs, etc.
- There is no minimum contribution required from the Borrower’s own funds
- Allows Buyers that have been homeowners previously (Do NOT have to be First-Time Home Buyers)
- Expanded Debt-to-Income Ratios to 50% (in certain cases)
- ALL property types are allowed, i.e. Condominiums, Townhomes, Single-Family, 2-4 Units (Properties must be Owner-Occupied)
It’s my opinion that “HomeReady” is a financing option that’s presently being under-utilized. HomeReady’s cousin at Freddie Mac (“Home Possible”) is included in my assessment, as both Programs can be smartly and responsibly implemented to enhance financing options for a segment of Borrowers that might not qualify for other traditional financing programs. “Home Possible” and “HomeReady” may also allow some Buyers to qualify for a purchase/ownership of a higher-priced home … something that had eluded them previously.
I’m easily found at: