The My Community mortgage has been re-branded as HomeReady™

Home buyers standing in front of their new home
Do you want (or need) a low down payment loan program?
How about flexible approval guidelines and relaxed credit requirements?

If so, then you want the HomeReady™mortgage!

The HomeReady™ mortgage is a home loan created to help low to moderate income home buyers purchase a home (or refinance their mortgage). The loan is available in all 50 states! You are not required to be a first time home buyer with this loan. Home buyers may have an ownership interest in other residential properties at the time of settlement.

The HomeReady™ mortgage features a minimum down payment of 3% (one unit property).

HomeReady™ interest rate

This HomeReady™ mortgage is likely to have a below market interest rate, and the mortgage insurance cost is less.

The loan program permits lower credit scores . . . as low as below 620 with some lenders. The loan term is 30 years.

What properties are eligible?

One-unit properties, including manufactured housing (provided the property meets the MH Advantage requirements), and units in condos and PUDs; units in co-ops, provided the unit conforms to the Federal National Mortgage Association (Fannie Mae's) requirements, and the mortgage lender has received specific authority to deliver mortgages on co-ops to Fannie Mae;

New construction, existing structures and two, three, and four-unit properties.

How much is the down payment?

For 1-unit properties, the down payment is requirement is 3%, for a 2 unit dwelling the requirement is 15%, and 3 to 4 unit properties require a 25% down payment.

Eligible sources for the down payment & closing costs

• Borrowers own funds, including checking, savings, certificate of deposit, or other depository accounts.

Cash on hand (“mattress money” is allowed and is an acceptable source of funding for the borrower’s down payment, closing costs and repaid expenses. . The lender is required to verify and document that the borrower typically makes use of cash for expenses and that the amount of money saved is
consistent with the borrower’s payment practice.
• Proceeds from loans secured by the borrower’s own assets, such as a 401k loan.

• Eligible Community Second Mortgages – Some local, county, and state governments provide down payment and closing cost grant money to prospective home buyers. Government and non-profit grants are allowed.

• Gift money from a relative, fiancé/fiancée, domestic partner, church, employer, union, and grants from non-profit or local government agency may pay some or all of the down payment and closing costs.

Some lenders are able to pay a percentage of the down payment and closing costs by “increasing” the interest rate on the loan.

• Employer assistance in the form of a grant, a direct fully repayable second mortgage or unsecured loan, or a differed payment second mortgage or unsecured loan.

Eligible Borrowers:

    US Citizens
    Permanent Resident Aliens
    Non-Permanent Resident Aliens

Ineligible Borrowers:

Investors   

Corporations

Partnerships

Maximum Loan Amount

The maximum loan amount for the My Community mortgage will be determined by your monthly income, monthly debt and current county lending limit that is set by Congress each tear.

Maximum sales price

No maximum sales price, just loan amounts.

Seller Paid Closing Costs

The seller is allowed (not required) to pay a percentage of the closing costs. The seller assist is limitation is based on the down payment percentage.

3% of the sales price with 3% - 9% down payment
6% of the sales price with 10% or greater down payment

"Sounds great . . .  what's the catch"?

Income limitation

Prospective home buyers must meet the median area income. See the income limits on the sidebar. The HomeReady™mortgage requires the household income to be at or below the Area Median Income for the county where the property is located. However, the income limit is waived for homes located in low to moderate census tracts.

Home Ready