HomeReady™ Replaces MyCommunityMortgage
Excellent news for U.S. home buyers —the government has backed a new program which is now available in all 50 states.
The program requires just 3% down and is officially known as .
HomeReady™ targets home buyers with average income or below, although the program can be used by just about anyone, depending on where you live. It’s an advanced, buyer-friendly version of Fannie Mae’s MyCommunityMortgage (MCM) program, which was retired in late-2015.
HomeReady™ is Fannie Mae’s latest program to provide mortgage access to credit-worthy borrowers who may otherwise be unable to get access to a home loan.
The program can be used by borrowers of any income level in low-income census tracts nationwide; and, by with average income or less in high-minority census tracts and designated disaster areas, such as areas affected by flooding, storms, or wildfire.
HomeReady can also be used by any home buyer whose income is at least twenty percent less than the average for the area.
HomeReady™ mortgage rates are often below the rates for a typical conventional mortgage.
HomeReady™ For Home Buyers
As a home buyer, there are a number of reasons to consider the HomeReady mortgage program.
First, the program requires a downpayment of just three percent; and, the program is not just limited to first-time home buyers.
The ability to make a downpayment of less than 20% can be significant to renters who want to make the transition into homeownership. For many, it can be the difference between being able to buy a home and having to rent for another year.
Second, unlike most other loan programs, the HomeReady™ program carries no minimum “investment” requirement. This means that buyers can get their 3% downpayment in the form of cash gifts or grants.
Buyers don’t need to bring any of their own money to closing.
Third, with the HomeReady™ program, buyers can use income from anyone living in the house to help get qualified. This is especially helpful in multi-generational and extended households, where everyone contributes to family expenses.
Additional benefits of the HomeReady™ program include the allowance of boarder income to help qualify and access to reduced mortgage rates at high LTVs.
Other HomeReady™ Home Loan Benefits
The HomeReady™ mortgage program is backed by the government’s Fannie Mae agency, which is the largest backer of mortgage loans in the country.
This means that home buyers can apply for the HomeReady™ program with just about any bank or mortgage lender in the country.
And the banks are providing low mortgage rates.
Because HomeReady™ specifically targets low-to-moderate income households, the program waives many of the loan fees that accompany “standard” conventional home loans.
Using HomeReady™, you may get access to up to 50 basis points (0.50%) below the rate for a comparable Conventional 97 loan, which is Fannie Mae’s other three percent downpayment program.
Furthermore, the rates for private mortgage insurance (PMI) are reduced, too, making the HomeReady™ home loan a relative bargain for buyers who choose to use it.
Buyers using HomeReady™ have a full range of mortgage products from which to choose, too.
The program is available as a fixed-rate mortgage or an adjustable-rate mortgage (ARM); with terms choices of 10 years, 15 years, 20 years, or 30 years.
You can even use HomeReady™ on a multi-unit home.
If you’re buying a 2-4 unit home and intend to live in one of the home’s units, you can apply for HomeReady™ as an owner-occupied (i.e.; primary residence) property,
HomeReady™ cannot be used for an investment home.
What Are Today’s HomeReady™ Mortgage Rates?
The HomeReady™ mortgage program offers low mortgage rates, reduced mortgage insurance requirements, and flexible underwriting guidelines to qualified buyers.
Get today’s live mortgage rates now. Your social security number is not required to get started, and all quotes come with access to your live mortgage credit scores.