How can I get a HomeReady loan?
Qualifying for a HomeReady Loan
- You must not earn more than 80% of your Census tract’s median income. …
- You must agree to complete a 4-6 hour online homeownership education course.
- You need a FICO score of at least 620 in most cases.
- You need to use the home as your primary residence.
What are HomeReady loans?
HomeReady mortgages are home loans financed through the Federal National Mortgage Association (Fannie Mae). A HomeReady loan is meant to help borrowers with low to moderate income buy or refinance a home by reducing the standard down payment and mortgage insurance requirements.
What is a HomeReady 30 year fixed?
The HomeReady™ Mortgage (HomeReady) program helps lenders serve today’s market of creditworthy, low- and moderate-income (LMI) borrowers, and encourages the financing of homes in designated low-income, minority,15 and disaster-impacted commu- nities.
What credit score does Fannie Mae require?
Because Fannie Mae has a minimum qualifying credit score of 620, this should help more clients qualify together on the loan, allowing for the use of all incomes to determine what they can afford. This also helps clients who are still working on their credit but may be applying with a co-signer.
Do you have to be a first-time buyer for HomeReady?
Is HomeReady for first-time home buyers only? No, the HomeReady mortgage program can be used by first-time buyers and repeat buyers. However, you can’t get a HomeReady loan if you still owe money on more than one other home loan.
What’s the difference between HomeReady and home possible?
In short, HomeReady applies more flexible qualification guidelines to enable more borrowers to participate in the program. The Home Possible program also enables borrowers to use a non-occupant co-borrower and incorporate non-traditional income sources in their loan application.
How much of a down payment do I need for a Fannie Mae loan?
3%
Down payment.
Fannie Mae’s HomeReady® and standard loan programs require only a 3% down payment for a single-family home. You can use your own funds or get a gift donation from a family member. To buy a second home or an investment property, you need a down payment of 10% and 20%, respectively.
What is the interest rate for Fannie Mae loans?
For a 15-year loan, the average rate is 2.08%. The 30-year rate is expected to average 3% through 2021, according to Fannie Mae’s Economic and Strategic Research Group.