Fannie Mae Broadens Access to Credit for Eligible Home Buyers.
Home Buyers have long been overburdened by the mortgage application process and simplification of the lending regulations is long overdue. There have been a few policy shifts recently that make the mortgage process smoother, and in my humble opinion fairer, for qualified and qualifiable home buyers. Still, a lot more needs to change. For instance FNMA’s negative view of condominiums. But let’s just concentrate on the positive in this post.
Fannie Mae recently announced enhancements to HomeReady®, the affordable mortgage option designed to meet the diverse needs of today’s borrowers. HomeReady allows borrowers to provide as little as 3 percent down, and was the first affordable lending option to offer creditworthy borrowers the ability to qualify with income from non-borrower household members. HomeReady continues to evolve with enhancements that expand access to credit responsibly and promote successful homeownership.
New enhancements offer:
- Simplified income eligibility – Fannie Mae raised income limits to 100 percent of area median income in all areas, except low income market tracts that have no limit, making it easier for lenders to determine eligibility for HomeReady and helping more homebuyers take advantage of this affordable mortgage option.
- More support for sustainable homeownership – In addition to the popular online course offered by Fannie Mae’s partner Framework, Fannie Mae will accept one-on-one pre-purchase advising from HUD-approved providers to meet HomeReady’s homeownership education requirement. In the coming months, Fannie Mae will offer lenders a $500 credit to encourage borrowers to take advantage of this new personalized support option. Together, these options will help more borrowers succeed in sustainable long-term homeownership with HomeReady.
- Market-driven features – More than 700 Fannie Mae lenders have already adopted the HomeReady mortgage, helping thousands of families become homeowners. HomeReady features continue to evolve to incorporate feedback from lenders, making it a simpler, more effective product for the affordable and underserved market. For a complete list of enhancements, see Selling Guide Announcement SEL-2016-06.
For more information on HomeReady, visit www.fanniemae.com/singlefamily/homeready. Reprinted with permission from RISMedia. ©2016. All rights reserved.
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