The Fannie Mae HomeReady program has a variety of options to help low- to moderate-income borrowers purchase or refinance their home, including flexible income sources and low down payment options.
· Income Eligibility based on Area Median Income (AMI)
· No limit in income census tracts
· 100% of AMI in all other areas
· LTV up to 97% / CLTV up to 105% with Community Seconds®
· No first-time homebuyer requirement
· Credit scores as low as 620
· Owner-occupied 1-4 Units, Condos, Manufactured Housing and PUDs
· For single family residences, there is no minimum borrower funds contribution (may use gifts, grants, Community Seconds, and cash-on-hand)
· Non-occupant borrower income is allowed as qualifying income to 95%
· Accessory unit rental income and rental income from boarders may be used for income qualification
· Homeownership education course required, for purchase transactions.
· Pricing advantages compared to standard programs:
· No loan level price adjustments if LTV >80% and Credit Score =680 (both must apply)1
· Maximum 1.500 LLPAs for all other scenarios1
· Reduced MI compared to standard programs for LTVs >90%