Home Ready
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Home Ready
A HomeReady Mortgage is a mortgage product designed to help eligible low- to moderate-income homebuyers achieve homeownership. It’s offered by lenders but backed by Fannie Mae.
Eligibility:
- Meet income limits set for your area by Fannie Mae.
- Minimum credit score requirements (typically 620, but may vary).
- Healthy debt-to-income ratio (ideally below 45%).
- Down payment of at least 3%.
- Completion of a homeownership education course approved by Fannie Mae.
Benefits:
- Lower down payment: Compared to conventional loans, HomeReady allows a down payment as low as 3%.
- Competitive interest rates: Due to government backing, HomeReady loans often offer attractive rates.
- Flexible qualifying factors: Income limits and credit score requirements can be more forgiving compared to conventional loans.
Considerations
- Income limits: You must meet the income eligibility for your area.
- Homeownership education: Completing a homeownership course is mandatory.