NEW Loan Program Offered by Fairway!

HomeReady™, the enhanced affordable loan program from Fannie Mae was released this week. Fairway Independent Mortgage branches in Arizona began offering the product Monday.

Below is a quick Fact Sheet on the product. For more information, to see if your Buyer qualifies, and for a co-branded flyer, contact a Fairway Loan Officer today.

HomeReady™ Mortgage

Help meet the diverse needs of today’s buyers with HomeReady, Fannie Mae’s enhanced affordable lending product.

Overview
Designed for creditworthy, low- to moderate-income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities.
HomeReady lets you lend with confidence while expanding access to credit and supporting sustainable homeownership.

• Simplicity and certainty for lenders
  
• Improved pricing and execution
  
• Product features designed to align with today’s buyer demographics and support sustainable
  homeownership
  

Borrower Benefits Accessible and Sustainable Financing

Low down payment. Up to 97% financing for home purchase with many borrower flexibilities. Flexible sources of funds can be used for the down payment and closing costs with no minimum contribution required from the borrower’s own funds (1-unit properties). Conventional home financing with cancellable monthly MI (per Servicing Guide policy); reduced MI coverage requirement above 90% LTV supports competitive borrower payment. Homeownership education helps buyers get ready to buy a home and be prepared for the responsibilities of homeownership. The required training offers an easy-to-use, online course provided by Framework.

Income Eligibility
(Aligned with Fannie Mae’s regulatory housing goals and may help lenders meet applicable Community Reinvestment Act goals)

No income limit: Properties in low-income census tracts 31% of census tracts

100% of AMI: Properties in high-minority census tracts and designated disaster areas

20% of census tracts

80% of AMI: All other properties 49% of all U.S. census tracts

AMI = area median income (AMI data source: FHFA)

Product Features

• DU will automatically identify potentially eligible loans.
  
• Underwriting flexibilities include:
   Offers an innovative new feature that supports extended family households: will consider income from a non-borrower household member as a compensating factor in DU to allow for a debt-to-income (DTI) ratio >45% to 50%.
  
  •   Allows non-occupant borrowers, such as a parent.
    
  •   Permits rental income from an accessory dwelling unit (such as a basement apartment).  Allows boarder income (updated guidelines provide documentation flexibility).
    
• Financing up to 97% LTV (DU is required for LTVs >95%). Borrower is not required to be a first-time buyer; purchase of one-unit principal residence (limited cash-out refi up to 95%).
  
• Lower MI coverage requirement than standard (25% for LTVs >90% to 97%).
  
• Allows for nontraditional credit.
  
• Gifts, grants, Community Seconds®, and cash-on-hand permitted as a source of funds for down
  payment and closing costs.
  
• Supports manufactured housing up to 95% and HomeStyle® Renovation (approved lenders) to 95%.
  Homeownership Education and Post-Purchase Support
  Comprehensive homeownership education. Requires online course provided by Framework, and offers additional post- purchase support through the life of the loan to help ensure sustainable homeownership.
  
  • Borrowers will invest 4−6 hours (average) of their time and a modest fee of $75 (paid to Framework) to learn the fundamentals of buying and owning a home, take an online test, and receive a certificate of completion.
    
  • Although one-on-one counseling is optional for HomeReady, Framework will offer borrowers a referral to a HUD-approved counseling agency for additional assistance. Borrowers also have the option to consult a counselor of their choice.
    
  • To further promote sustainability, borrowers will have access to post-purchase homeownership support for the life of the loan through Framework's homeownership advisor service.