Whether you are a first-time homebuyer, or a repeat homebuyer, recent actions by Fannie Mae has now made it easier for you to purchase your dream home by Miller & Smith! Whether you choose to customize one of our new to be built homes, or choose one of our immediate delivery homes for sale, this new mortgage program will benefit many in the process!
In August, Fannie Mae announced its new HomeReady mortgage program that will replace the previous affordable lending program named MyCommunityMortgage. With this new program in place, the goal will be to help creditworthy borrowers with lower than average incomes, access affordable & sustainable mortgages.
The VP for underwriting and pricing analytics at Fannie Mae, Jonathan Lawless, says, “HomeReady will help qualified borrowers access the benefits of homeownership with competitive pricing and sustainable monthly payments.” He is confident that the program will create business opportunities for lenders serving the needs of today’s market.
The previous MyCommunityMortgage program included the option for a down payment of as little as 3% for qualified first-time homebuyers. With that program, at least one co-borrower had to be a first time buyer; while with the new HomeReady program it is also available to repeat homebuyers. HomeReady includes other flexibilities such as allowing income from non-occupant borrowers and rental payments to augment a borrower’s qualifying income. Additionally, non-borrower household members can be considered in determining an appropriate debt-to-income ratio for the loan.
Fannie Mae will utilize their online program by requiring all borrowers under the HomeReady mortgage to complete an online education course called Framework. They will also have access to online tools to support sustainable homeownership. Lenders will have resources in order to gain access to borrowers that before now have been overlooked or missed.
In the following months of the year, Fannie Mae will be providing additional details and begin accepting loan deliveries using the HomeReady guidelines. Thanks to Fannie Mae’s new program, it has never been easier to purchase a new home from Miller & Smith!