HomeReady Mortgage

HomeReady is a Federal National Mortgage Association (Fannie Mae) program for low-income borrowers. It offers low rates, low financing costs, and reduced mortgage insurance costs. It allows a down payment as low as 3% (whereas normally it is 20%). HomeReady mortgages can be used to buy a primary residence or refinance an existing mortgage. It also offers a limited cash-out refinance option too.

Salient Features of HomeReady Mortgages

• It allows you to pay a low down payment (as low as 3%).
• Even allows you to use gift money or receive funds from a third-party to cover the down payment.
• Reduces mortgage insurance requirements and costs phenomenally.
• You only need a 620 credit score to qualify, however better score can earn you better price options.

Eligibility Requirements for a HomeReady Mortgage

To qualify for a HomeReady mortgage, you must meet the following requirements:

• A minimum credit score of 620.
• Your household income must be less than 80% of the median income (AMI) in your area.
• Up to 50% debt-to-income ratio allowed depending on other risk factors.
• At least one borrower on the loan must be a first-time home buyer to be eligible for the VLIP LLPA Credit.
• You must participate in an approved homeownership education course.

Eligibility Property Types

• Single-family homes of one- to four-units
• Condominiums
• Town homes
• manufactured housing, and units in condos and PUDs

At Premium Mortgage Demo, we believe in offering a personalized service that helps you fulfill your dream on own house. Whether you're looking to purchase, refinance or cash-out, Premium Mortgage Demo has the knowledge and expertise to help you achieve your financial goals.

Have questions? Reach out to us by phone at 877 123 XXXX or click the button below to request a free consultation with one of our mortgage advisors.

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