It’s Going to Be Easier to Get a 3 Percent Down Mortgage

HomeReady, the mortgage option that allows borrowers to qualify with income from non-borrower family members, is getting upgrading.

It’s Going to Be Easier to Get a 3 Percent Down Mortgage

That’s according to government-sponsored mortgage titan Fannie Mae, who announced the following features in a release on Tuesday, the day the changes went into effect. Among them, occupant borrowers on a HomeReady loan can own other homes, and there will no longer be a necessity for home ownership education for limited cash-out refinance transactions.

Beyond that, Fannie Mae increased income limits to 100% of area median income in all area, except low-income market tracts which have no limit, which is designed to make it simpler for lenders to discover a borrower’s eligibility. It’s going to do away with the necessity for landlord education for HomeReady loans secured by two-, three-, or four-unit properties. (Home ownership education will still be to be required, however.) Also, borrowers will be able to meet the home ownership education requirement by getting one-on-one assistance from a HUD-approved nonprofit counseling agency, that can assist them know the home buying process and responsibilities that come with home ownership, which include making a mortgage payment by the due date.

How HomeReady works

Targeting borrowers in areas the U.S. Census Bureau deemed as low-income, Fannie Mae launched the HomeReady program in fall 2015. The financial loan was notable for the fact that it factors non-borrower household members’ incomes into applicants’ eligibility. Applications can include borrowers who aren’t currently living in the property, including parents, along with rental income the borrower may earn from renting a basement apartment, as an example. HomeReady can also help qualified borrowers purchase a home using a down payment of as little as 3% down.

Things to remember

As with any mortgage application, it’s imperative that you know where your credit stands so you have some kind of idea what type of conditions and terms you could qualify for. Naturally, your credit score is one of the biggest factors utilized to see whether you are eligible for home loan financing and just what your interest rates and fees will look like. You can view your two free credit scores, that happen to be updated each month, on Credit.com

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6908 El Centro Court, Tampa, FL

6908 El Centro Court
Tampa, FL

$200,000
- Lot Size
  
  1,743 sqft
- Home Size
  
  998 sqft
- Beds
  
  2 Beds
- Baths
  
  1 Bath
- Year Built
  
  1974
- Days on Market
  
  2
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