New Financing Option for Low to Moderate Income Buyers
Strong Support for Homebuyer Education!
Today, Fannie Mae announced that over the next few months, a new mortgage product and option known as "HomeReady Mortgage" will replace their previous affordable mortgage product, the MyCommunityMortgage program.
In this move, Fannie Mae is making a strong statement and sending a definitive message about the importance of empowering homebuyers with education by integrating education and counseling into the process. In their announcement, Fannie Mae noted that requiring online homebuyer education powered by Framework, “will put HomeReady borrowers in a strong position to succeed in homeownership.”
Framework is the online homebuyer education tool created by the Minnesota Homeownership Center and the Housing Partnership Network that is based on the requirements of the HUD Housing Counseling Program, National Industry Standards for Homeownership Education and Counseling – and uses our award-winning Home Stretch curriculum as its foundation.
As with the MyCommunityMortgage, the HomeReady mortgage allows up to 97% financing but the lending requirements for the HomeReady mortgage have been simplified for lenders and allow for more flexibility when working with lower income borrowers. For example, lenders may now include income from non-occupant borrowers, such as parents, and rental payments, such as from a basement apartment, to augment the borrower’s qualifying income. Visit Fannie’s HomeReady page for additional information for lenders.
