HomeReady Program: Perfect for you?
With standard loan programs offering such historically low interest rates, you may not think there’s another loan program out there that could beat standard loan pricing. But, that’s not the case thanks to Fannie Mae’s HomeReady program.
If you’re a creditworthy low- to moderate-income borrower looking for low down payment options, HomeReady may be the perfect program for you. HomeReady is available when purchasing or refinancing any single-family home as long as the borrower meets the income limits of the property location. Plus, you don’t have to be a first time homebuyer to qualify. It’s available for anyone who falls within the income eligibility limits. And depending on where the property is located, there may not even be income limits.
With that being said, here are a few great benefits of this program:
- Low down payment options with up to 97% LTV financing for home purchase (meaning, you can put as little as 3% down)
- Competitive pricing that meets or typically beats standard loan pricing
- Flexible sources of funds with no minimum contribution requirement from borrower’s own funds (1-unit properties)
- Reduced Mortgage Insurance (MI) coverage for down payment of 10% or less
So, you’re essentially getting an unbeatable rate and lower monthly mortgage insurance – which help reduce your overall monthly payment. The only thing you have to do is complete an online Homeownership course for $75 and send the certificate of completion to us. It’s that simple. And trust me – the modest fee is worth it after all the money you’ll save in the end.
One other important thing to note: HomeReady is perfect for borrowers with lower credit scores because they benefit from not only the affordable pricing but also don’t get hit as hard with high mortgage insurance premiums because of the reduced MI coverage.