Recent new rules for the HomeReady loan product by Fannie Mae will allow more borrowers to qualify for a mortgage. 1st Nationwide Mortgage partners with Fannie Mae approved lenders to offer the product and make homeownership easier for low- to moderate-income residents in Orange County and adjacent counties in Southern California, a company spokesman said. —
HomeReady mortgage offers more flexibility for down payment and less income limitations, the spokesman said.
“Relatives and friends can give or add their money for the down payment, rent from roommates rent can be used to help the borrower qualify and no income maximums — aspects not normally available with other home loan programs," said Scott Fitzpatrick, Marketing VP in Mission Viejo.
With HomeReady, income limit do not apply in low- to moderate-income areas or the 100 percent limit of the area's median income, plus acceptable sources for down payments and closing costs is allowed from grants and gifts, Fitzpatrick said.
The common requirement that a minimum contribution come from the applicant's own account for one-unit properties is not a condition; and co-borrowers will not be obligated to live in the home.
"There are numerous low down payment options with other conventional loan products, but the conditions are so elaborate that it results in obstacles for lots of qualified borrowers," said Scott Fitzpatrick, VP of 1st Nationwide Mortgage. "With HomeReady, the goal is to provide access to credit and simplify the loan process while upholding responsible lending practices. This Fannie Mae product is a straightforward affordable loan solution that gives prospective borrowers a great alternative.”
Other features include down payments as low as 3 percent and limited cash-out refinances of up to 95 percent. Fitzpatrick goes on to say that,"this program encourages buyers to make informed choices."
In addition, applicants must complete a homeowner counseling course offered by Fannie Mae or a HUD-approved provider to satisfy the homeownership education requirement. Some areas will have online courses available to help prepare buyers for homeownership. A certificate will be issued once satisfactorily completed.
Working with a 1st Nationwide Mortgage Loan Originator throughout the process helps borrowers make choices that lead to lasting homeownership.
About 1st Nationwide Mortgage
1st Nationwide Mortgage is based in Orange County, CA and specializes in residential home loans for first-time home buyers, and existing homeowners. Mortgage originators at 1st Nationwide Mortgage are licensed, experienced, and able to professionally assist qualified applicants with government-backed loans such as VA and FHA loan programs as well as jumbo loans for a purchase or refinance transaction.
Release ID: 134958