Let’s talk home loan products… Fannie Mae’s HomeReady®


Fannie Mae has been a fantastic resource for many years in sustaining homeownership.  Back in 2001, they launched the MyCommunityMortgage® program to better serve borrowers in need of an affordable lending product, and in 2015 they revisited the product and replaced it with HomeReady® to better fit the needs of borrowers for the new era.

Specifically, this product recognizes that today’s families are changing and it’s more common to find extended-family living arrangements in underserved populations.  As part of that, HomeReady® acknowledges Extended-Income Households (EIH) where another individual in the household has an income equal to at least 30% of that of the borrower.  And with that flexibility, there is an entirely new reach for eligible homebuyers.

Fannie Mae has been a fantastic resource for many years in sustaining homeownership.

Eligible borrowers don’t have to be first-time homebuyers, down payments can be as low as 3%, MI is cancellable, and with additional income sources, DTI ratios can be as high as 50%.

Since the release of the product, Fannie Mae has continued to make product adjustments to simplify the process for lenders.  They recently completed an update in DU version 9.3 to include HomeReady® additional fields and data screens to assist loan officers with this product.   The product matrix for loan officers can be found here: https://www.fanniemae.com/content/fact_sheet/homeready-product-matrix.pdf  For more information you can find the lender fact sheet here   https://www.fanniemae.com/content/fact_sheet/homeready-overview.pdf  or access Fannie Mae’s information website at https://www.fanniemae.com/singlefamily/homeready.

 

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