If you are in the market for a new home, but you worry that it will be too complicated or that you won’t have enough money for a down payment, you need to check out Fannie Mae’s Home Ready program. This is a wonderful new product that Fannie Mae has come up with to make it easier for people to achieve the American dream of homeownership. James B. Nutter & Company has been a partner of Fannie Mae’s for decades and is proud to offer this innovative program to its customers.
This new program allows home buyers the ability to purchase a home with a down payment of only 3 %. This is less than the FHA requirement and it does not have up front Mortgage Insurance (MI) like FHA does. There is monthly MI, but it is at a reduced rate when compared to traditional conventional mortgages.
If you have a credit score of 680 or higher, there are none of those pesky Delivery Fees that are charged on most conventional loans. This also keeps the funds required to close lower than usual, since you cannot typically finance those fees.
Home Ready also has some unique features that help buyers qualify for their new home purchase; Co-Borrowers are not required to occupy the property (your parents could be on the loan, even if they have no intention of living with you). If you are buying a home, but need a roommate to help with the costs, you could charge them rent and that income could help you qualify for the payment.