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Everything You Need to Know About Fannie Mae’s New Home Ready Mortgage - Thinking of Buying a Home in Carmichael

By
Real Estate Agent with Real Estate Specialist -Rigley Realty Group 01391317 / 01472902

Mike and Jennifer Rigley (buyers) 916.378.4671 / (sellers) 916-660-5823 Info@RigleyRG.com
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Traditionally, getting a mortgage requires you to have a level of income appropriate to the size of Carmichael home that you're buying. But for a lot of low-income and minority borrowers, a simple measure of one person's income isn't an accurate measure of whether or not that person can afford a home.

 

Now, with the Home Ready mortgage from Fannie Mae, multigenerational and extended households can have easy access to mortgage funds. How does the Home Ready mortgage work? Here's what you need to know.

 

Flexible Down Payment Requirements Make Home Ownership More Accessible

 

Traditional mortgages require you to pay 20% of the home price upfront in the form of a down payment, or 5% if you register for Private Mortgage Insurance. And although 5% is a small down payment, it's still a significant sum of money for a lot of low-income borrowers. But now, with the Home Ready mortgage, qualified borrowers can access financing with as little as 3% down, making it easier to become a homeowner.

 

Non-Borrower Household Income Is Now Counted As Income

 

Another big change that the Home Ready mortgage introduces is that lenders may now count all household income when determining affordability criteria (but not qualifying income). There's no minimum requirement for funds to come directly from the primary borrower, which means that non-borrower members of the household can have their income counted when determining whether a mortgage is affordable. It's also possible to use non-occupant borrower income – for instance, the income of a borrower's parent – to be counted as income.

 

For extended and multigenerational households, this means mortgages are much more affordable as all household income can now be counted as eligible.

 

Eligibility Requirements: Who Can Qualify For A Home Ready Mortgage?

 

Home Ready mortgages come with certain eligibility criteria attached that homeowners will need to meet. In order to be eligible, a household must be below a certain percentage level of area median income (AMI) – that is, a household must fall somewhere in the lower half of their area's income scale.

 

For properties that are located in "low-income census tracts", there is no income limit. For properties in high-minority areas and designated disaster areas, borrowers at or below 100% of AMI can access Home Ready financing. And in all other census areas, borrowers can access financing if their annual household income is no greater than 80% of AMI.

 

The new Home Ready mortgage from Fannie Mae can make it easier for certain households to qualify for mortgages. Your local mortgage advisor can help you to understand how the program works. For more information, call your mortgage professional today.

 

 

 

To stay up to date with Carmichael Real Estate news log on to www.rigleyrealtygroup.com

 

Are you a local hero looking to buy or sell a home in CarmichaelCLICK HERE to find out about the Home Benefits for Heroes savings program NOW! Former and active Military, law enforcement, firefighters, health care providers, first responders, and teachers are but a few of the everyday heroes that may be eligible for home buying and home selling discounts through Home Benefits for Heroes

 

Looking for a top Carmichael realtor? Call the Rigley Realty Group  today at 916-378-4671 or log on to www.RigleyRealtyGroup.com to start your on-line home search now. Call us today – you’ll be glad you did.

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Thanks for joining us,

Mike & Jennifer Rigley

RigleyRealty Group

916-339-7061

Cal BRE # 01391317 / 01472902 

 

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Whether you are buying or selling a home, Mike and Jennifer Rigley of the Rigley Realty Group are your go to local Realtors. Their strong focus on assisting homeowners in need and offering a free straightforward no nonsense consultation, is why they have been named one of "Americas Best Real Estate Agents for 2013". 

  

  This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Mike Rigley's personal views.

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