HomeReady, Fannie Mae’s enhanced affordable lending product. Designed for creditworthy, low- to moderate-income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities.
Key Features:
- Up to 97% financing (1-unit purchase)
- No minimum borrower contribution (1-unit properties)
- Allows for flexible sources of funds for down payment and closing costs (gifts, grants, Community Seconds®, and cash-on-hand)
- Required homeownership education through a simple online course provided by Framework Flexibilities
- Non-occupant borrowers allowed (max 95% LTV in DU®) – income is considered part of qualifying income and subject to applicable income limits
- Innovative new feature that supports extended family households: will consider income from a non-borrower household member
- Compensating factor in Desktop Underwriter Automated Underwriting System allows for a debt-to-income (DTI) ratio higher than 45%, often up to 50% with compensating factors such as:
- Non-borrower income must be at least 30% of the total monthly qualifying income being used by the borrower(s). (Note: Income from more than one non-borrower household member may be considered.)
- Non-borrower household members may be relatives or non-relatives.
- Non-borrowers must document their income and sign a statement of intent to reside with the borrower(s) for a minimum of 12 months. Documentation required only if DU determines the non-borrower income will provide a benefit. (See optional Fannie Mae Form 1019.)
Home Ready Fact Sheet.
Income Eligibility Look Up Tool.
Overview Video (Fannie Mae website link).
