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.
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.
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.