Is Fannie Mae New Home Ready Program Good For You

Dated: 11/11/2015

Views: 1245

Home Ready Program

In a few weeks Fannie Mae will being rolling out a brand new loan program to those struggling to buy their home. Here are some highlights:

1. Down payments as low as 3 percent.

2. No minimum contribution from you — the borrower — toward the down payment on a single-family home purchase. You can supplement your own cash with gifts from relatives. << Think gift from family

3. You can add the income of one or more resident household members into total household mortgage income for calculating the debt-to-income ratios. These will be “non-borrowers,” in Fannie Mae terms — contributors to income but not legal co-borrowers with responsibility for the debt. Under some circumstances where non-borrowers in the household have significant incomes, Fannie may waive its standard debt-to-income ratio limit and consider applications where debt ratios go as high as 50 percent of household income. Total debts include not only the mortgage but also payments for auto loans, credit cards, student loans and the like. << Think multi -generational family living situations. 

4. To add further to income for the purposes of the mortgage, you may be able to bring in “non-occupants” who are helping you make your payments but don’t plan to live in the house. These might be parents, grandparents, siblings or others. (When non-occupants are part of the picture, however, the minimum required down payment jumps to 5 percent.) The program also allows you to count income from in-house boarders — maybe someone who rents a room or an accessory dwelling or apartment.

Is this program right for you? Contact me know and I will have one of my Home Ready program loan specialist contact you right away!


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Chuck Rifae

Chuck Rifae has been a leading Northern Virginia Realtor since 2002. Chuck holds the advanced designation of Broker of Real Estate for both Maryland and Virginia. When Chuck is not working with buyer....

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