This Week, Bethany Imhoff Shared Five Things to Know About Fannie Mae's HomeReady Program
Fannie Mae is making some changes, and first-time buyers should take note. The new HomeReady program aims to help low to moderate income borrowers overcome some common barriers to home ownership. While the program is available to repeat buyers, and as an option for a rate-and-term refinance, it has some unique aspects that could be especially beneficial for first-timers. Here are some of the highlights:
- Your down payment can be as low as 3%, all of which can come from gift funds. Lender and seller contributions can go toward closing costs. And unlike an FHA loan--a longtime go-to for new homeowners--HomeReady does not require an upfront mortgage insurance premium.
- Income Pooling is allowed. Traditionally, the only income considered is from the borrower and co-borrower, if applicable. HomeReady allows more flexibility, counting the income of other relatives who may share the household.
- Homeownership education is a requirement. At least one borrower must complete an online course designed to prep buyers for responsible homeownership. The course lets you go at your own pace; you can work on it from your smartphone, tablet, or computer.
- The program is available to buyers with a credit score of at least 620. If you haven't yet established enough credit to have a credit score, you may be able to use nontraditional forms of credit, like gym memberships or utility bills.
- There is an income limit. In almost all cases, you may not make more than 80% of the Area Median Income. You can find these figures for the Portland metro area--and beyond--here. Exceptions will be made for properties in low-income or high-minority census tracts.
Bethany Imhoff o MLO-1378711
Team Banker/Client Liaison
Pacific Residential Mortgage, LLC o NMLS-1477/WA CL-1477 o Equal Housing Lender
email@example.com o (503) 210-4289
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Credit on approval. Terms subject to change without notice. Not a commitment to lend. Call for details. www.nmlsconsumeraccess.org