- Maximum loan amount $484,350. Over this limit, the loan is a JUMBO loan.
- 3% to 5% minimum down payment options.
- 100% Option with no MI available. This includes a 1st & 2nd mortgage.
- Credit score 620+. Higher credit scores typically result in a better interest rate and lower mortgage insurance costs.
- Non-occupant Co-borrowers and gifts are allowed.
FANNIE MAE - HOMEREADY
- 3% down payment available.
- Discount Mortgage Insurance.
- Expanded debt ratios.
- No minimum borrower funds required for down payment.
- Gifts, grants, down payment assistance programs, and 2nd's allowed.
- Non-occupant borrowers allowed (max 95% LTV).
- No reserves required.
- No first time homebuyer requirements.
- The occupant borrower may own other residential properties.
- Other Income:
- Boarder income (relatives or non-relatives): up to 30% of qualifying income; documentation for at least 9 of the most recent 12 months (averaged over 12 months) and documentation of shared residency for the past 12 months.
- Accessory dwelling units: Rental income may be considered in qualifying the borrower per rental income guidelines.
- Minimum Credit Score 620.
- Home ownership education required, cost $75.
- Limits defined by areas, no limits in low-income census tracts.
- Household income is not required.
- Non-borrower living in home income may be included.
- Innovative new feature that supports extended family households, will consider income from a non-borrower household member.
- Boarder income permitted documentation of at least 9 of the most recent 12 months, up to 20% of qualifying income.
- LTV - Loan to Value
- Purchase: 97%, High-Balance – 95%, Manual underwriting 95%
- Limited Cash-Out Refinance:
- FNMA owned mortgages up to 97% LTV/ CLTV up to 105% with eligible Community Second Assistance Program.
- DU and manual underwriting to 95%.
- Non-Occupant Borrowers
- Permitted to maximum 95% LTV in DU; 90% LTV manual with max 43% DTI for occupying borrower.
- Income considered as part of qualifying income and subject to income limits.
- No limitation on ownership of other property for non-occupant borrower.
Guidelines change frequently, therefore, we do not guarantee accuracy. Above is provided as a reference, to be confirmed with our team. Subject to change without notice.