HomeReady loan income limits
The Federal National Mortgage Association, known as Fannie Mae
offers a 3% down payment mortgage program for qualified home buyers.
HomeReady™
replaces the Fannie Mae’s MyCommunityMortgage (MCM) program.
The HomeReady™ program only requires a 3% down payment and there are NO first-time homebuyer requirements! Prospective home buyers are permitted to obtain the required 3% down payment and other closing costs as a cash gift or grant from an eligible donor (i.e. parent(s), relative, spouse, girlfriend or boyfriend, or a fiancé/fiancée). The money does not need to be yours.
Buyers are not required to bring any of their own funds to the
closing.
The HomeReadyTM program enables purchasers to utilize income from
anybody living in the home to qualify (for example, grandmother's
social security).
The income restriction for the loan program is dependent on the county-area income where the house is situated. The size of a family is not considered to establish income eligibility. However, borrowers of any income level in low-income census tracts worldwide, as well as designated disaster regions, such as places devastated by floods, storms, or wildfire, may utilize the program.
HomeReadyTM mortgage rates are often lower than traditional
mortgage rates.
HomeReady accepts non-traditional credit. Credit scores as low as
620 are acceptable.
Public employees (firefighters, police officers, health care
professionals, teachers, and so on) and military personnel may be
eligible for specific flexibilities, such as the utilization of
overtime and part-time income.
Debt-to-income ratio:
Income from a non-borrower household member may be considered for
a debt-to-income (DTI) ratio up to 50 percent. HomeReady allows
non-occupant borrowers, such as a parent. Debt to income is a simple
calculation that evaluates the amount of income and monthly bills.
Because HomeReadyTM is designed especially for low-to-moderate
income families, the loan program waives many of the loan costs that
are often associated with “standard” conventional home loans.
The HomeReadyTM financing program typically offers low interest
rates.
Private mortgage insurance (PMI)
is required for down payments less than 20%, however the monthly
cost is reduced.
The program is offered as an adjustable-rate mortgage (ARM) or a
fixed-rate mortgage (FRM), with maturities ranging from 30 to 20
years, 15 to 15 years, and 10 years.
Multi-unit houses are allowed if the borrower plans to live in one
of the home's units (i.e. main residence).
HomeReadyTM cannot be utilized to purchase an investment property.
Refinance: Limited cash-out refinance up to 95
percent LTV is an eligible use of this product.
Loan application is made
through approved Fannie Mae lenders. Most banks and mortgage brokers
offer the HomeReady™ loan program.
Seller paid closing costs: The home seller is
permitted (not required) to pay up to 3% of the sales price toward
closing costs with a 3% down payment.
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Frequently
Asked Questions the About HomeReady™ Mortgage Program
Q. Can you refinance into a HomeReady loan?
A. Yes, you can refinance your current mortgage into a
HomeReady loan.
Q. Do you have to be a first-time home buyer for
HomeReady?
A. There are no first-time home buyer requirements.
Q. Does Fannie Mae HomeReady have income limits?
A. The total annual qualifying income may not exceed 80% of
the area median income for the property's location.
Q. Is HomeReady a conventional loan?
A. The HomeReady loan is considered a conventional loan,
since it parallels conventional loan guidelines and meets Fannie Mae
loan requirements.
Q. What is the minimum credit score for HomeReady?
A. The minimum credit score is 620