What Is HomeReady?

The biggest challenge faced by new home buyers is overwhelmingly the down payment. You’re not alone if you’ve ever thought you could never save enough. HomeReady™ can help. It’s a 3% down loan geared to help lower-income home buyers who don’t have a lot to put down.

That means it’s possible to get into a $200,000 home with just $6,000 down. At just three years old, HomeReady™ has already helped thousands become homeowners. Are you ready to be the next to buy a home with this program? Keep reading or apply today

Here are the major features of HomeReady:

• Borrower can have low-to-moderate income
• Are first-time or repeat homebuyers
• Have limited cash for down payment
• Credit score is ≥680
• Can have supplemental boarder or rental income
• Can be used as a low-cost refinancing option

About the HomeReady Program

HomeReady™ is a mortgage program created in December 2015. It’s backed by the U.S. government via Fannie Mae and available via most U.S. lenders. Via HomeReady™, households in lower-income neighborhoods and in minority-heavy areas can get easier access to low-downpayment mortgages at today’s current rates.

HomeReady™ allows a downpayment of just 3% on a home and permits the “income pooling” for all of the members of a household. This means that income from grandparents, parents, relatives, and working children can all be used to help qualify for a home loan.

For many families, this can mean the difference between getting approved for a loan and getting turned down.

HomeReady™ can also be used for a refinance, allowing up to 97% loan-to-value (LTV) in some cases.

In order to be eligible for the HomeReady™ program:

• You must not be an owner of another residential property in the United States
• You must agree to complete a 4-6 hour online homeowner counseling course If you can meet these two criteria, you may be HomeReady™-eligible.

$500 Benefit for Borrowers!

At least one borrower must obtain customized one-on-one homeownership counseling from a HUD-approved nonprofit counseling agency before entering into a home purchase contract. You have to show a Certificate of Pre-Purchase Housing Counseling (Form 1017) and we will input a Special Feature Code when we submit your loan.  This $500 will be given to you as a credit on your loan when you close.

Approved counseling can also be used as a compensating factor for borrowers with debt-to-income ratios over 45 percent (possibly allowing up to 50 percent).