Mountain West Financial is Now Offering HomeReady Loan Program by Fannie Mae

Mountain West Financial is now offering the HomeReady Loan Program, Fannie Mae’s enhanced affordable lending product.

HomeReady is designed to help meet the diverse needs of today’s buyers; 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. The HomeReady™ Mortgage is expected to be competitive with other products in the market (depending on loan-to-value [LTV] ratio and credit score) by providing improved pricing – better than or equal to Fannie Mae standard loan pricing – and competitive borrower payments.

 

HomeReady Key Features Include:

  • Up to 97% financing
  • No minimum borrower contribution - use flexible sources of funds for down payment and closing costs (gifts, grants, Community Seconds®, and cash-on-hand)
  • Required homeownership education through a simple online course provided by Framework (Fee applies)

 

HomeReady Flexibilities Include:

  • Non-occupant borrowers allowed (max 95% LTV in DU®) – income is considered part of qualifying income and subject to applicable income limits
  • Innovative new feature that supports extended family households: will consider income from a non-borrower household member • Compensating factor in DU to allow for a debt-to-income (DTI) ratio higher than 45% (up to 50%).

o   Not counted as qualifying income.

o   Non-borrower's income must be at least 30% of the total monthly qualifying income being used by the borrower.

o   The non-borrower household member must be a family member, i.e., a spouse, child, dependent, domestic partner, fiancé, fiancée, or any other individual related to the borrower by blood, marriage, adoption, or legal guardianship.

o   The non-borrower must document their income and sign statement of intent to reside with the borrower(s) – only required if DU determines the non-borrower income will provide a benefit.

  • Rental income from accessory dwelling units may be considered in qualifying the borrower (per rental income guidelines).
  • Lower than standard mortgage insurance coverage – 25% for LTVs above 90% to 97%

For full guidelines and more information, contact your MWF Loan Originator today!


* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.