The HomeReady Mortgage Program is attractive because it enables you to buy a home with a down payment of only 3% and no personal financial contribution. HomeReady also allows applicants to use non-traditional income sources, including income from boarders and non-occupant co-borrowers such as a parent or other relative, to qualify for the mortgage. These unique program features make home ownership more attainable for more people.
The program also applies more flexible borrower qualification guidelines, does not charge an upfront mortgage insurance fee and the monthly private mortgage insurance (PMI) you do pay is cancellable after you have sufficient equity in your home -- approximately 20%. Additionally, the program permits applicants with a limited or no credit history to qualify for a mortgage by using a non-traditional credit profile. In short, the HomeReady Program offers multiple benefits for borrowers.
Although HomeReady Program requirements and eligibility guidelines are determined by Fannie Mae, the program is offered by participating lenders including banks, mortgage brokers, mortgage banks and credit unions. Fannie Mae does not provide a list of HomeReady lenders by state but any approved lender can offer the program.
The table below shows mortgage terms for leading lenders near you. We recommend that you contact multiple lenders to confirm that they offer HomeReady mortgages and to learn more about program qualification requirements. Shopping multiple lenders is also the best way to save money on your mortgage.
You can use the FREEandCLEAR Lender Directory to search for lenders by state, lender type and loan program. For example, you can search for top-rated lenders in your state that offer the HomeReady Mortgage Program as well as other low down payment programs. Using the our Lender Directory is free and requires no personal information.
We recommend that you contact at least one bank, mortgage broker and mortgage bank as they typically offer a broader selection of loan programs. Contacting different types of lenders also increases the likelihood that you find a lender that meets your financing needs.
In addition to using the resources outlined above, we encourage you to review our comprehensive HomeReady Mortgage Guide. This resource addresses program advantages and disadvantages, borrower eligibility, qualification requirements, fees and how you can apply for the program.
Review our HomeReady Mortgage Guide
In summary, the HomeReady Mortgage Program is offered by a wide range of traditional lenders. To determine if a lender offers the program, all you have to do is ask. Although you are not required to pay any extra fees to apply for the program, mortgage rates and closing costs vary by lender and other factors. This is why, like with all mortgage programs, it is important to compare multiple proposals so that you can find the HomeReady lender that is right for you.
HomeReady Program: https://www.fanniemae.com/singlefamily/homeready
Understand the positives and negatives of the HomeReady Program so you can determine if it is the right mortgage program for you. Pros include the ability to buy a home with a low down payment while considerations include borrower income limits and higher interest rates as compared to government-backed mortgage programs.
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