It seems kind of silly to have to ask the question, "is that a bedroom?" when you see what obviously looks like one. Our friend, you might just be surprised that what you see might NOT be a bedroom
Three Percent Down Mortgages A Reality
We know that inventory is short, and buyers are plentiful, but can those buyers qualify AND make the down payment on a new home? Fannie Mae, says yes.
Introduce, the HomeReady mortgage loan program. Targeting borrowers in areas the U.S. Census Bureau deemed as low-income, Fannie Mae launched the HomeReady program in fall 2015. The loan was notable for the fact that it factors non-borrower household members’ incomes into applicants’ eligibility. Applications can include borrowers who aren’t currently living in the home, such as parents, as well as rental income the borrower may earn from renting a basement apartment, for instance. HomeReady also helps qualified borrowers purchase a home with a down payment of as little as 3% down.
The 2015 originated HomeReady mortgage program just underwent a few key updates; updates that are good news for folks who already own property, and those who dread the sometimes required education courses that come with specialty loans. In the changes, Fannie Mae increased income limits to 100% of area median income in all areas, except low-income market tracts that have no limit, which is intended to make it easier for lenders to determine a borrower’s eligibility. It will do away with the requirement for landlord education for HomeReady loans secured by two-, three-, or four-unit properties. (Homeownership education will still be required, however.) Also, borrowers will be able to meet the homeownership education requirement by getting one-on-one assistance from a HUD-approved nonprofit counseling agency, which can help them understand the home buying process and responsibilities that come with homeownership, such as making a mortgage payment on time.
If you think a HomeReady mortgage loan would be the right fit for you, you'll want to keep a few things in mind. While non-resident incomes are considered on the loan application, you must still be able to qualify as credit worthy to obtain the loan. Be aware of your credit health, and check your score before applying. Your credit score is one of the biggest factors used to determine if you qualify for home loan financing and what your interest rate and fees will look like.
Want to learn more about the HomeReady loan? Call us at The Shields Team! We'd love to talk with you and see if the loan is a good fit for your situation. We have trusted lending partners who would be most glad to talk with you to determine if you qualify, and if, (not to worry) your credit score is not quite there, how you can get it there. Our office number is(423) 433-6517, and we would love an opportunity to meet with you in person! Our office is inside Keller Williams Realty at 1033 Hamilton Place in Johnson City. Let's get you on your way!
Holding a BS in Environmental Science, and MA in Education, real estate was not Shields Team Buyer Specialist Rayne Price's first career choice. It was only after encouragement from his wife and a cl....
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