Just Approved: Ditch mortgage insurance with Fannie Mae HomeReady program
Fannie Mae’s HomeReady program is hands down the best 30-year conventional loan offered by lenders.
Specifically, HomeReady offers expanded eligibility for financing homes in low-income and disaster-impacted communities.
About half of the Bay Area’s zip codes qualify as low- to moderate-income communities, according to Fannie Mae.
Most of the qualifications and restrictions revolve around income or geography, but everyone who receives a benefit from the program must first pass an online exam about homeownership.
In this particular scenario, the borrower was looking to purchase a property within an eligible zip code and had completed the required homeownership education.
The borrower was also able to take advantage of rent they had been receiving from a roommate.
Income from rented rooms counts under HomeReady‘s expanded eligibility in.
Once all of the eligibility requirements were confirmed, the purchase loan was submitted to the lender with a 711 credit score, 85 percent LTV, and moderate income.