Fannie Mae’s HomeReady Program New Information

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Filed under: Fannie Mae

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Fannie Mae’s HomeReady, the affordable mortgage option designed to meet the diverse needs of today’s borrowers, announced new enhancements. HomeReady allows borrowers to provide as little as 3% down, and was the first affordable lending option to offer creditworthy borrowers the ability to qualify with income from non-borrower household members.

In a press release and a recent article by Brian Collins from National Mortgage News, Fannie Mae explained that it is making its housing counseling requirements more flexible so additional borrowers can qualify for HomeReady.

According to Fannie Mae’s Selling Guide, borrowers who receive one-on-one counseling from the Department of Housing and Urban Development’s approved counselors will be exempt from taking the HomeReady online course.

The guide added that “one-on-one counseling will assess the borrower’s current financial situation, address credit challenges, develop a workable budget, help determine whether it is the appropriate time to become a homeowner, and educate the borrower on the home buying process and responsibilities of home ownership.”

Collins also explained that Fannie Mae will no longer require home ownership education for limited cash-out refinancing and will allow an owner-occupant borrower on a HomeReady loan to own other residential properties.

In addition, Fannie Mae will allow down payment assistance and second mortgages from providers that work through HUD-approved nonprofit counseling agencies. It also dropped its requirement that buyers of two to four unit properties must take an additional landlord education course; however, home ownership education will still be required.

In the coming months, Fannie Mae will offer lenders a $500 credit to encourage borrowers to take advantage of this new personalized support option. Together, these options will help more borrowers succeed in sustainable long-term home ownership with HomeReady.

If you have questions about anything concerning the mortgage industry, please feel free to call me so we can discuss what is on your mind.

sources: http://www.otcmarkets.com/stock/FNMA/news?id=136704 and http://www.nationalmortgagenews.com/news/secondary/fannie-eases-requirements-for-homeready-program-1083122-1.html

 

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