Flat Branch Home LoansHomeReady Programs
HomeReady mortgages are provided through your local Flat Branch Home Loans by Fannie Mae to meet the needs of diverse buyers. The program is designed for creditworthy low- and moderate-income borrowers.
Designed with the first-time home buyer in mind, this loan program allows for greater flexibility with credit requirements and a down payment as little as 3%.
- Households earning up to 100% of Area Median Income
- Up to 50% debt-to-income ratio allowed depending on other risk factors
- A minimum 620 credit score
- Purchase and limited cash-out refinance transactions are eligible
- 1-4 unit properties and condominiums are eligible
- Borrower is not required to be first-time homebuyer
HomeReady Special Features
Fannie Mae recognizes the unique circumstances that may prevent someone from being eligible for home loan. HomeReady hopes to help those folks by offering flexible income choices for creditworthy borrowers. It's a good idea to be equipped with this information; however, you should absolutely reach out to one of our Flat Branch loan officers to determine if HomeReady is the right program for you!
Up to 30% of the borrower's qualifying information can come from roommates or boarders, assuming you have had a shared living situation for the past 12 months.
Unlike most other programs, HomeReady allows co-signer income to be used for qualification, even if they don't live in the residence.
Low Down Payment
Only a 3% down payment is required to buy a home with the HomeReady program. Of course, higher credit scores will yield the best rates on the loan. This low down payment includes first-time home buyers and repeat buyers.
The 3% payment can come from a down payment gift, a down payment assistance program, community seconds, or cash-on-hand, which can help you purchase your home sooner.
HomeReady loans have affordable and cancellable monthly mortgage insurance (MI). Reduced MI coverage requirement is above 90% loan-to-value (LTV). For example, 25% MI is applicable for greater than 90% to 97% ratios. Other information regarding guidelines for monthly insurance with HomeReady loans can be accessed through a loan officer. Please don’t hesitate to ask any questions or state any concerns.
Income Limit Eligibility
- No income limit for properties in low-income census tracts
- 100% of Area Median Income for all other properties
If you're curious about the median income in your area, please don't hesitate to reach out to your Flat Branch loan officer or you can use Fannie Mae's eligibility lookup tool!
Homeownership Education Requirement
Flat Branch Home Loans and the HomeReady program want to make sure you and your family are adequately equipped with the right knowledge when purchasing and moving into your new home. HomeReady mortgages require a homeownership education requirement which can be taken as an online class, offered by Framework.
HomeReady Programs Highlights
- As low as 3% down payment requirement
- Gifts, grants, community seconds and cash-on-hand are permitted for down payment and closing costs
- Flexible income source including regular, rental and co-signer income
- Affordable and cancellable monthly mortgage insurance.