A new program will be hitting the marketplace soon, and we here at Directors Mortgage wanted to give you a sneak peek at the highlights!
Fannie Mae’s HomeReady program is designed for creditworthy, low-to moderate-income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities. It has numerous borrower-friendly features, such as:
- Up to 97% LTV purchase financing for 1-unit properties – borrower does NOT have to be a first-time home buyer like they do on a standard Fannie Mae transaction (though they may not own any other real estate at the time the loan closes).
- No minimum borrower contribution (1-unit properties); use flexible sources of funds such as gifts, grants, Community Seconds and cash-on-hand.
- Lower than standard mortgage insurance coverage for LTVs from 90.01-97% to provide for cheaper monthly payments.
- The ability to utilize sources of income unique to the HomeReady program, such as rental income from an accessory dwelling unit.
Directors Mortgage is excited to be able to offer this program to your clients when it becomes available. Stay tuned for more information, and contact your Directors Sr. Mortgage Specialist if you have any questions!