Mortgage News: Fannie Expands Availability of the HomeReady Low Down Payment Program
Through eased requirements, more Arizona homebuyers
can now access the low down payment program.
Fannie Mae announced it has relaxed the counseling requirements on HomeReady so that more homebuyers can qualify for the affordable home loan program.
According to Fannie's Selling Guide Announcement issued Tuesday, July 26, 2016, homebuyers receiving one-on-one counseling from the Department of Housing and Urban Development's approved counselors will now be exempt from taking the HomeReady online course.
The one-on-one counseling, according to the selling guide, is intended to "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 homeownership."
Additionally, Fannie will no longer require the homeownership counseling or education on limited cash-out refinances and will allow owner-occupant borrowers on a HomeReady loan for purchasing other residential properties.
Down payment assistance and second mortgages are allowed from providers that work through HUD-approved nonprofit counseling agencies. Community Seconds (second mortgages) are not purchased by the GSE, however the second mortgages can be provided by employers or nonprofits in order to finance down payments or closing costs.
All changes mentioned in the Selling Guide Announcement are effective immediately, according to Fannie.
Fannie also previewed a few HomeReady changes to be officially announced later this year, including debt-to-income ratios up to 50%.
Most Fairway Independent Mortgage Corp. branches in Arizona are approved lenders for HomeReady and have been originating the loan product since its launch*.
For more information on this product or to get paired with a Licensed Loan Officer versed in the HomeReady product, request more info HERE.
*Fairway is an approved lender for this product and does not represent Fannie Mae or any governing agency. Visit Fannie Mae's website for more information on governing entities.
About Fairway Independent Mortgage Corporation
Founded in 1996 by CEO Steve Jacobson, Fairway Independent Mortgage Corporation is a Top 10 ranked national mortgage lender. The company has more than 250 locations including several Arizona Mortgage Branches. At Fairway, customer service is a way of life. At Fairway speed of response is the goal, with some of the fastest turn times in the industry. The goal is to act as a trusted advisor, providing highly personalized service and helping through every step of the loan process. It’s all designed to exceed expectations, guarantee satisfaction and earn trust. For more information on Fairway Mortgage Arizona, please visit our website at www.FairwayArizona.com.
Copyright©2016 Fairway Independent Mortgage Corporation. NMLS#2289. 4801 S. Biltmore Lane, Madison, WI 53718, 1-877-699-0353. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Lender. AZ License #BK-0904162.