Dympna Fay-Hart
Serving Chicago Area Sellers & Buyers

(773) 230-3800

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New Mortgage Qualifying Guidelines - Just Announced

Fannie Mae announced that it will make an enhanced affordable lending product available to lenders sometime later this year.  The new program, called the HomeReady™ Mortgage, will offer expanded eligibility guidelines that will be real game changer for a lot of people who could not previously qualify for a mortgage.  

Finally, after years of research, Fannie Mae has recognized the many financial challenges many would-be homebuyers are facing.  Many can't afford a large down payment, they may have multiple student loans, and/or they may rely on income from non-traditional sources, such as parents or other family members.  These factors have impacted the ability of many people from qualifying for a mortgage.  Well, that may be about to change . . . perhaps for YOU!

Here are the new expanded guidelines for the HomeReady™ Mortgage:

♦  A 3% down payment option.  First-time and repeat homebuyers will be able to purchase with a down payment as low as 3% of the purchase price

♦  Income from a household member who is not a borrower (meaning they won't be on the mortgage) will be considered.  This means that in multi-generational households, the income of children, grandparents, and other family members may help buyers qualify for a mortgage.

♦  All borrowers do not have to reside in the property.  Parents who won't be living in the home can be co-borrowers on the loan to help their children qualify for a mortgage.

♦  Rental payments may be considered as another allowable income source to help qualify a buyer (i.e., rental payments from a basement apartment).

In order to qualify for the ​HomeReady™ Mortgage buyers will be required to complete an online homeownership education course to help prepare for the responsibilities of buying and owning a home. Learn More on Fannie Mae's website.

For more details and to see if you qualify, talk to your lender. Since this program is not expected to roll out to lenders until later this year, you may have to wait to get all the details.  But if one or more of the new guidelines applies to you, it's best to talk to your lender now in case there are things you will need to get in order ahead of time.  Of course, I am happy to provide you with all the guidance you need, so don't hesitate to contact me any time.