HomeReady® Program

For several years, the rule of thumb was to put 20 percent down toward a down payment. Times have changed – for the better.Saving money can be both challenging and exciting. Most of us likely have memories of trying to save money for something special. Perhaps you opened a lemonade stand on the corner to earn some extra money or found joy hunting for loose change in the couch or the clothes dryer. The point is, we all remember stuffing our piggy banks in the hopes to one day be able to buy that special item.

Chances are, we all still have that goal of saving money for something special. For many, that goal is the dream of homeownership. For several years, the rule of thumb was to put 20 percent down toward a down payment. Times have changed – for the better. Colonial offers several low down payment programs that may be right for you.

As a Fannie Mae Lender, Colonial is pleased 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. Below are some of the program’s key features and the homeownership education requirements that make up the program.

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’re looking for a low down payment loan program, Fannie Mae’s HomeReady® might be right for you. For a more in-depth look at the program, please visit their website. To speak with one of our highly knowledgeable professionals about HomeReady® or to learn more about our full suite of loan products, visit www.GoColonial.com, or give us a call today at 817.390.2000.


Related Article: The percentage of single women buying homes just hit its highest point since 2011. If you are Female and Single? This Could Be Your Year to Buy a Home.


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