Fannie Mae Opens Up HomeReady Program To More Borrowers

Posted by Patrick Barnard on August 08, 2016 No Comments
Categories : Residential Mortgage

To make it easier for lenders to determine eligibility and to spur more home buyers to take advantage of the program, Fannie Mae recently raised the income limits to qualify for its HomeReady program to 100% of area median income in all areas, except for low-income market tracts that have no limit.

That basically means any potential home buyer who makes median-area income, as defined by Fannie Mae, could be eligible for the program, which lets buyers get a mortgage for as little as 3% down.

HomeReady is the first affordable lending option to offer creditworthy borrowers the ability to qualify with income from non-borrower household members, Fannie Mae says. The company recently announced a set of changes to the program to make it easier for borrowers to participate.

Now, homeowners applying for the program can substitute one-on-one pre-purchase advising from U.S. Department of Housing and Urban Development-approved providers to meet HomeReady’s homeownership education requirement.

What’s more, in the coming months, Fannie Mae will offer lenders a $500 credit to encourage borrowers to take advantage of this new personalized support option.

So far, more than 700 Fannie Mae lenders have adopted the HomeReady mortgage, the company reports.

Fannie Mae continues to incorporate feedback from lenders as part of its effort to make HomeReady “a simpler, more effective product for the affordable and underserved market.”

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