Just this week, Fannie Mae has loosened their income limits in conjunction with their HomeReady program. Until recently, the majority of properties in Oregon and Washington were located in areas that were limited to 80% of the Area Median Income (AMI) limit for the county the property was located in. With the improvements made this week, the 80% designation is no longer in effect, meaning that more borrowers can qualify for the benefits of the HomeReady program, which include:
- Minimum 3% down payment required for 1-unit properties!
- Gift funds allowed for down payment and closing costs!
- Unlike regular conforming loans, the borrower does NOT have to be a first-time homebuyer!
- Reduced mortgage insurance for clients putting less than 10% down!
- Rates as good or better than regular conforming rates, depending on down payment and credit score!
- Program-specific income source availability (boarder income, rent from an ADU, and non-borrower household income) to allow for more borrowers to qualify!
Contact your Directors Mortgage Senior Mortgage Specialist today to discuss how this program can improve your client’s purchasing power!