Five Questions on Friday with Bethany Imhoff
Unlocking Opportunities: Fannie Mae’s HomeReady Program for First-Time Homebuyers
This week, Bethany Imhoff shares 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 prepare 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 protected] O (503) 210-4289
CREDIT ON APPROVAL. TERMS SUBJECT TO CHANGE WITHOUT NOTICE. NOT A COMMITMENT TO LEND. CALL FOR DETAILS. WWW.NMLSCONSUMERACCESS.ORG
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