3 Percent Down Loans ‘Safe, Sound’ and Promoting Homeownership
Fannie Mae’s Housing Industry Forum published an article on the safety and soundness of HomeReady®, a recently announced mortgage offering 3 percent down and other flexibilities to help lenders qualify households using nontraditional income (such as Extended Income Households or EIHs). EIHs could be multiple generations living in the same household, parents and adult children, or related adult income earners such as brothers, uncles, or cousins.
The mortgage includes an educational component, offered online. Borrowers who complete the course are eligible for ongoing support with a free U.S. Department of Housing and Urban Development-approved counseling agency.
The article addresses concerns raised that low-down products such as HomeReady are “unsafe.”