At SRK CAPITAL, we understand that purchasing a home is a significant milestone. This is especially true for first-time buyers and those with moderate incomes. Navigating the mortgage process can be daunting. But, loan programs like Fannie Mae's HomeReady® Mortgage can make home ownership more attainable.
We are proud to offer HomeReady loans, along with a wide range of QM loans and Non-QM loans. Our goal is to help make the dream of home ownership more accessible to as many home buyers as possible.
What are HomeReady Loans?
The HomeReady mortgage is a type of conventional loan program offered by Fannie Mae. It is meant for creditworthy, low- to moderate-income home buyers. It allows for a down payment as low as 3%, making it an attractive alternative to FHA loans.
Key Features of HomeReady Loans
Low Down Payment
HomeReady offers the ability to buy a home with just a 3% down payment. This feature stands out for reducing the upfront costs linked to buying a home.
Flexible Income Sources
HomeReady allows borrowers to include income from various sources. These sources include non-occupant co-borrowers and rental income from boarders. This flexibility can enhance your eligibility and borrowing capacity.
Reduced Mortgage Insurance Costs
Unlike some other loan programs, HomeReady offers cancellable mortgage insurance once your home equity reaches 20%. This feature can eventually lead to significant savings over the life of the loan.
Home Ownership Education
Some borrowers can be required to finish a home ownership education course. There are several to pick from, like Fannie Mae's free HomeView® course. These courses help make sure you are ready for the responsibilities of home ownership.
HomeReady Income Limits And Eligibility
To qualify for a HomeReady loan, consider these requirements:
Income Limits
Your income must be equal to or less than 80% of the area median income (AMI). You can check your eligibility by using Fannie Mae's Area Median Income Lookup Tool.
FICO Score
A credit score of at least 620 is required. But, a higher score can improve your chances of approval and secure better interest rates. Learn more about improving your credit score.
Occupancy
The property must be your primary residence. HomeReady loans are not available for investment properties or second homes.
Home Ownership Education
Completion of an approved home ownership education course is sometimes required. This is meant to make sure you have the knowledge to manage your new home payments responsibly.
Property Types Eligible for HomeReady Mortgages
There are several different types of properties HomeReady is for. These include:
- Single-family homes: Ideal for individual families seeking a standalone residence
- Condominiums: Perfect for those generally desiring a community living environment with shared amenities
- Planned Unit Developments (PUDs): Offering a mix of residential units and common areas
- Manufactured Homes: Provided they meet specific eligibility criteria
Benefits of Choosing a HomeReady Loan
Affordability
With a low down payment and reduced mortgage insurance costs, HomeReady specifically makes home ownership more attainable.
Flexibility
The program's acceptance of various income sources and property types further caters to diverse borrower situations.
Education
Home ownership courses prepare you for the financial responsibilities ahead, specifically promoting long-term success.
How SRK CAPITAL Can Help You
At SRK CAPITAL, we're committed to guiding you through the mortgage process and making it as seamless as possible. Here's how we can help:
Expert Consultation
Our team will assess your financial situation. That way you can decide if a HomeReady loan, or any of our other conventional loans, aligns with your goals.
Seamless Application Process
We'll help you in going over necessary documentation and what is needed to finish your application.
Ongoing Support
From pre-approval to closing, we're here to answer your questions and go over any concerns.
Steps to Get Started
- Assess Your Eligibility: Use Fannie Mae's Area Median Income Lookup Tool to check if your income qualifies
- Review Your Credit: Make sure your credit score is at least 620. If needed, take steps to improve your score
- Gather Documentation: Prepare necessary loan documents, including proof of income, employment history, and financial statements
- Consult with SRK CAPITAL: Reach out to our team to discuss your loan options and start the application process
Get In Touch With SRK CAPITAL
HomeReady offers a pathway to home ownership for those who have wondered if it is out of reach. With its low down payment, flexible income considerations, and focus on education, it's an excellent choice for eligible borrowers. At SRK CAPITAL, we're here to help you navigate this opportunity with confidence and ease.
Ready to take the next step toward owning your home? Contact SRK CAPITAL today to explore your options with a HomeReady loan. You can also use our interest rates calculator to see personalized rates for various loan programs, including HomeReady.