The HomeReady™ mortgage can help responsible homebuyers who have limited down payment funds or unique circumstances, such as extended households, buy a home. It’s an affordable mortgage option designed to help homeowners sustain their mortgage payments for the long run. To be eligible, you must plan to live in the home as your primary residence. You will need to check up on your current home warranty as well to see how much you are covered currently. You can check on websites such as https://homewarranty.firstam.com/articles/what-is-a-home-warranty to get more information.
- Down payments as low as 3%.
HomeReady mortgage allows for down payments as low as 3%, and, for most properties, all of the down payment funds can come from sources other than your own savings. Funds you’ve received as a gift from a relative, a grant, or from other sources can be used toward your down payment and closing costs. There may be down payment assistance funds available in your area, too. Research your options – funds may be available from your local housing finance agency, your employer, housing nonprofit agencies, and others.
- Income from family or other household members can help in qualifying.
HomeReady mortgage allows co-borrowers who don’t live in the home to be included on the mortgage, such as parents or others who want to help. And, extended family or other household members’ income can help you qualify – even when they aren’t on the mortgage.
- Mortgage insurance may be eligible for cancellation.
If your down payment is less than 20% of your home’s purchase price, you will need to pay private mortgage insurance, generally as part of your mortgage payment each month. Unlike the mortgage insurance premium paid monthly over the life of many government-insured loans, you may be eligible to cancel PMI after you reach 20% equity in your home – which could save you money over time.
- Homebuyer education to help you prepare to buy and own a home.
HomeReady mortgage requires that at least one borrower complete the Framework Homeownership Course prior to purchasing the home. The course is conveniently available online, and mobile-friendly, so you can take it when, where, and how you like. It typically takes about 4 hours to complete. You can even get one-on-one assistance from a professional homeownership advisor whose job it is to help you become a successful homeowner. If you are having a financial misstep as you prepare to buy, you can look into fast bridging loans as a helpful way to get the funds you need to continue with becoming a homebuyer.
HomeReady mortgage does have income limitations in some areas to help ensure it is serving the borrowers and communities that need it most. Contact us to see if the HomeReady mortgage is right for you.
For more information, visit MyHomeReady.com