One of the biggest challenges homebuyers face is the ability to save enough money for a down payment. Rent prices continue to rise, which adds to the difficulty of trying to save. What many people struggling to save for a down payment don’t know is that programs like Fannie Mae’s HomeReady® Mortgage Program allows homebuyers the ability to use grants or gift funds to go toward the down payment of a home. Continue reading to learn all about the HomeReady® program’s key features and how Colonial can help.
About the HomeReady® Mortgage Program
As a Fannie Mae Lender, Colonial is excited to offer the HomeReady® Mortgage Program to our customers. This consumer-friendly program aims to help meet the diverse needs of today’s homebuyer by offering a lending program that is designed for creditworthy, low-to-moderate income borrowers that offers extended eligibility for financing homes in designated low-income, minority and disaster impacted communities.
Key Features
- Low down payment – Up to 97% financing for home purchase with many borrower flexibilities
- No minimum borrower contribution required on 1-unit purchases. Down payment and closing costs can be funded by gifts, grants, Community Seconds® and cash on hand
- No income limit on properties in low-income census tracts
- Income from non-occupant borrowers and non-borrower household members may be considered
Homeownership Education Requirements
- Comprehensive homeownership education course (4-6 hours) provided by Framework ($75 fee)
- Online test and certificate of completion
- To further promote sustainability, borrowers will have access to post-purchase homeownership support for the life of the loan through Framework’s homeownership advisor service
If you or someone you know is looking to purchase a home and is having difficulty saving for a down payment, Fannie Mae’s HomeReady® program may be right for you. To learn more, visit the HomeReady® website, or work with one of our experienced Loan Officers to get you started on your home buying journey. For a look at all of Colonial’s home loan products, visit www.GoColonial.com today.
