What to Know About Fannie Mae’s HomeReady™ Program


The American household dynamic has changed many times over the last several decades. To better accommodate the needs of many borrowers across the country, Fannie Mae recently launched its HomeReady™ Mortgage Program. 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.

As a Fannie Mae Lender, Colonial is pleased to offer the HomeReady™ Mortgage Program to our customers.Fannie Mae’s HomeReady™ program also understands that many borrowers share residences and financial responsibility with their extended family. According to Jonathan Lawless, Fannie Mae’s vice president for underwriting and pricing analytics, about 19 percent of African-American households and 24 percent of Hispanic households share residences and responsibilities with their extended family. Therefore, lenders can now consider income generated by non-borrowers living in the household.

As a Fannie Mae Lender, Colonial is pleased to offer the HomeReady™ Mortgage Program to our customers. Here a few of the key features and homeownership education requirements that make up the HomeReady™ program:

https://www.fanniemae.com/singlefamily/homereadyKey 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

For a more in-depth look at Fannie Mae’s HomeReady™ program, please visit their website at www.FannieMae.com. To speak with one of our highly knowledgeable professionals about the HomeReady™ program or our other program offerings, call us at 800.937.6001, or visit us at www.ColonialSavings.com.

 

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