Over the last few blogs I have been reviewing the recent guideline changes from both FNMA and FHLMC. In this blog I want to move outside of the detail points of underwriting to make sure you are ready for a great new program just completed by FNMA. FNMA is replacing the My Community Mortgage with new HomeReady program. The new program can add new opportunities to your company’s arsenal of loan products to attract new clients. Based on my reviews of the HomeReady program and guidelines, I think this program is worth becoming an expert on.
HomeReady Program Details
To read all about the details you can go to www.FannieMae.com/singlefamily/HomeReady , but let me summarize a few highlights here to peak you interest.
- LTV 97%
- No first time home buyer requirement
- Allows for non-occupant co borrowers income to help your borrowers qualify (max 95% LTV)
- Allows for non-borrower household members income to qualify (yes NON-BORROWER)
- No minimum contribution required from the borrower for the 3% down payment or closing costs
- Allows for non traditional credit
- Clear easy single source of home buyer education
- Reduced MI coverage and costs
As I stated above the HomeReady program has all kinds of new innovative guidelines to help expand the home ownership dream to more families. For my fellow underwriters reading up on the guidelines for HomeReady will become imperative to help your company get the most out of this product. For example FNMA has a new 1019 form to qualify non-borrowers income, or understanding the income eligibility maps. All this information can be found in FMNA AllRegs under section B5-6-01
If you have been reading my blogs for the last few months, I have stated more than once that the industry is rapidly changing, and this program is just more evidence of the new and exciting changes.