HomeReady mortgage program

E333114

The HomeReady mortgage program is a Fannie Mae-backed affordable home loan option designed to help low- to moderate-income borrowers qualify for homeownership with flexible underwriting and lower down payment requirements.

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Predicate Object
instanceOf conventional mortgage product
mortgage program
allowsBoarderIncome consideration of rental or boarder income in certain circumstances
allowsCoBorrowers co-borrowers who do not live in the property in some cases
allowsDownPaymentSource Community Seconds loans
borrower funds
gifts
grants
alsoKnownAs HomeReady mortgage program
surface form: Fannie Mae HomeReady mortgage
backedBy Fannie Mae
benefit flexible income sources considered
lower down payment compared with many conventional loans
potentially lower mortgage insurance costs
borrowerRequirement at least one borrower must occupy the property as a primary residence
borrowers must complete homeownership education for certain transactions
creditAssessmentMethod Desktop Underwriter automated underwriting system
surface form: Desktop Underwriter
creditFeature flexible credit guidelines compared with some standard conventional loans
documentationRequirement standard income and asset documentation
downPaymentRequirement as low as 3 percent of purchase price
eligibleUse limited cash-out refinance
purchase of a primary residence
focus affordable lending
sustainable homeownership
geographicScope United States of America
surface form: United States
homeownershipEducationProvider Fannie Mae-approved providers
incomeLimitBasis area median income
incomeLimitVariation higher income limits in low-income census tracts
introducedBy Fannie Mae
lenderType offered through approved lenders
loanPurpose first-time homebuyer financing
repeat homebuyer financing
loanType adjustable-rate mortgage
fixed-rate mortgage
mortgageInsuranceFeature reduced mortgage insurance coverage compared with standard conventional loans
mortgageInsuranceRequirement required for loans with less than 20 percent down payment
occupancyType owner-occupied properties
primaryPurpose expand access to homeownership
provide affordable mortgage financing
propertyTypeEligible condominiums
planned unit developments
single-family homes
some multi-unit properties
regulatoryCategory conforming mortgage
replacedProgram MyCommunityMortgage program
riskManagementFeature homeownership education to reduce default risk
sponsor Fannie Mae
targetBorrowers low-income borrowers
moderate-income borrowers
underwritingFeature consideration of non-borrower household income in certain cases
flexible underwriting guidelines

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Fannie Mae hasProgram HomeReady mortgage program
HomeReady mortgage program alsoKnownAs HomeReady mortgage program
this entity surface form: Fannie Mae HomeReady mortgage