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HomeReady Mortgage for Refinancing

We understand the financial challenges of many homebuyers and homeowners looking to refinance. They can’t afford a large down payment; may have multiple student loans; or may rely on income from non-traditional sources (e.g., parents or other family members). These challenges can make homeownership seem impossible, or may have impacted their ability to buy or refinance a home in the past.

Not anymore. After much research and feedback from both homebuyers and lenders, Fannie Mae created HomeReady® mortgage, an enhanced affordable loan designed to meet the diverse financial and familial needs of responsible, creditworthy buyers and homeowners.

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Know the Features & Flexibilities

If you’re looking to buy or refinance a home, HomeReady mortgage addresses common financial challenges and offers expanded eligibility guidelines, such as:

  • A 3% down payment option. First-time and repeat homebuyers can purchase a home with a down payment as low as 3% of the purchase price.
  • Co-borrower flexibility. All borrowers do not have to reside in the property. For example, parents, who won’t be living in the home, can be co-borrowers on the loan to help their children qualify for a mortgage and purchase a home. Income limits may apply.
  • Additional income sources. Rental payments (e.g., from a basement apartment) may be considered as another allowable income source to help qualify a buyer.
  • A limited cash-out refinance. If you already have a Fannie Mae loan (find out here) you can refinance with as little as a 3% down payment.

Homeownership Education Requirement

HomeReady mortgage has a homeownership education requirement to help buyers prepare for the responsibilities of buying and owning a home. Buyers can complete an online homeownership course offered by Framework® to fulfill the requirement. One-on-one homeownership advising (e.g., through a HUD-approved counseling agency) may also be an option for buyers who could benefit from personalized assistance. If you seek one-on-one advising, speak with your lender beforehand to confirm that you’ll meet the HomeReady mortgage education requirement.

Get Started

For more details and to see if you qualify for a HomeReady Mortgage, talk to a lender. Your lender may have other affordable financing options for you to consider as well. Always compare and shop around for the mortgage that works best for your financial situation.

Beware of Scams

Learn how to identify and avoid scam artists who promise immediate relief from foreclosure.
 

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FAQs

Find the answers to common questions concerning your mortgage and the various options to avoid foreclosure.

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Glossary

Visit our glossary of key terms to increase your understanding of the foreclosure options available.
 

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