What You Need To Know On Fannie Mae's Home Ready Program

[Jerry Padilla]

Home Ready Program allows you to purchase your primary home and use potential rental income without a mortgage history or experience and is income restricted in many situations.

Home Ready Program - YOU ARE NOW LIMITED TO OWNING 2 PROPERTIES AND SUBJECT ONLY FOR THIS LOAN! Income Limit Restrictions apply unless the property is in an area considered under served.

Here is the link to look up income limitations, as well as area's that have no income restrictions; https://homeready-eligibility.fanniemae.com/homere...

Fannie Mae's Home Ready Program

No limitations on ownership of other property.

Required https://www.fhfa.gov/DataTools/Downloads/Pages/Con...

Some criteria that must be met!

• Income may not exceed 80% of the annual HUD Area Median Income (AMI), for the property's location,except:
  1) An income limit of 100% of AMI for properties located in:
  
  • High minority census tracts, and
  • Designated disaster areas
  • 2) There is not an income limit for properties located in a low-income census tract
  • 3) Home Ready Income Eligibility tool to determine AMI by property address:
• https://homeready-eligibility.fanniemae.com/homere... *********

Income from all borrowers listed on Note must be considered for qualification

Homeownership Education through Framework® is required for at least one borrower on the mortgage loan https://www.frameworkhomeownership.org/

Landlord Education is required for purchasers of 2-4 unit properties through a HUD approved Counseling Organization

Rental Income - 75% of the lesser of the actual or projected rents for the rental unit (1-4 unit) should be added as qualifying income if individual(s) has lived with and paid rent to the borrower for the last 12 months

NO Cash Out Refinances allowed under this program

Reduced MI applies