G’day mate! (I don’t know why I went Australian on you there.)
Last week’s post on NHF being suspended triggered a lot of questions about available alternatives. We mentioned two in last week’s post but there is another we wanted to make sure you knew about – FNMA Home Ready. Have you heard of it? If not, we wanted to pass this along as an option we can assist your buyers with.
Are you ready for Home Ready?
Here is the scoop:
- Up to 97% financing
- No Minimum borrower contribution (gifts, grants, own down are all options to cover down payment)
- Non-occupant co-borrowers are allowed (95% LTV max)
- Non first-time buyers are eligible (can not own other property at time of closing)
- Reduced cost mortgage insurance (25% coverage instead of 35% standard)
- Income limits apply (100% area median income)
- Homeownership education required
Looking to conserve cash through a low down payment while saving money on a monthly basis through reduced cost mortgage insurance? Hmmm, saving money on both down payment and monthly payment…I think that might be of interest to some of you!