Key Features of HomeReady Loans

1. Low Down Payment: HomeReady loans allow for down payments as low as 3% of the home’s purchase price, making it easier for borrowers to qualify with limited savings.

2. Flexible Income Sources: HomeReady loans accept various income sources, including rental income, non-occupant borrower income (such as from a family member), and income from household members who are not borrowers on the loan.

3. Homeownership Education: Borrowers are required to complete an online homeownership education course to better understand the responsibilities of homeownership and the mortgage process.

4. Cancellable Mortgage Insurance: If the borrower’s equity in the home reaches 20%, the mortgage insurance can be canceled, potentially reducing the monthly payment.

5. Flexible Property Types: HomeReady loans can be used to finance various property types, including single-family homes, condos, and certain manufactured homes.

Advantages of HomeReady Loans

– Low down payment requirement, making homeownership more accessible
– Flexible income sources and underwriting guidelines
– Homeownership education to better prepare borrowers
– Potential for mortgage insurance cancellation
– Availability for various property types

HomeReady loans are designed to help low-to-moderate income borrowers, first-time homebuyers, and those with limited funds for a down payment achieve their homeownership goals. By offering flexible underwriting guidelines and low down payment options, this program can make the dream of homeownership a reality for many individuals and families.

It’s important to note that HomeReady loans have specific eligibility requirements, including income limits and property location restrictions. Consulting with a qualified lender can help you determine if a HomeReady loan is the right choice for your specific situation.