HomeReady™ is a flexible mortgage program offered in partnership with Fannie Mae and is available to borrowers who meet income limits
defined by Fannie Mae for the location of the property being purchased.
What are the features of a HomeReady™ mortgage?
A HomeReady™ mortgage is an affordable loan option that offers flexibility to the borrower.
- Low down payment - 3% down payment minimum required
- Non-traditional credit is allowed - this includes looking at factors other than traditional credit scores, such as rental housing payments, utility bill payments, school tuition payments, etc.
- Flexible sources of funds allowable for the down payment and closing costs - gifts and grants are permissible sources of funds
- Borrower does not need to be a first time homebuyer
- Homeownership course - this loan requires an online homebuyer education course to help borrowers gain essential knowledge in preparation for being a responsible homeowner
Are the rates higher than a traditional mortgage?
No, rates are not higher than traditional mortgage options that offer low down payments.
What loan terms are available?
Standard fixed rate loan terms such as 20 and 30 year mortgages are available with a HomeReady™ loan.
Will I need mortgage insurance?
If your down payment is less than 20% of the home purchase price, you will have mortgage insurance. The mortgage insurance required with HomeReady™ loans is lower than mortgage insurance on FHA loans and goes away when you pay your loan down to 78% of the purchase price.
What kind of property can I buy?
You can buy a single-family home, condo, or townhouse.
Do I have to live in the home being purchased?
Yes, the HomeReady™ loan can only be used to buy an owner-occupied home. You cannot use this kind of loan to buy a second home or a rental property.
Can I use the HomeReady™ loan if I own another home?
No. You cannot own any other home when applying for a HomeReady™ loan. You may still qualify for a HomeReady™ loan if you own another commercial property.
Talk to us
To apply for a mortgage or get answers to questions, call our Mortgage Specialists
or email us at email@example.com.
FORUM NMLS #469848
NMLS Registry Information for FORUM Credit Union Mortgage Loan Originators