Fannie Mae's HomeReady mortgage is designed for the diverse needs of California home buyers with flexibility not found with other conventional mortgage products. What does that really mean for California residents?
HomeReady mortgage addresses common financial challenges and offers expanded eligibility guidelines, such as:
- Offers a 3% down payment option. First-time and repeat homebuyers can purchase a home in California with a down payment as low as 3% of the purchase price.
- Supports extended families in California. Income from a household member who is not a borrower (i.e., they won’t be on the mortgage) will be considered. This means—in multi-generational California households, the income of children, grandparents, or other extended family members may help buyers qualify for a HomeReady mortgage.
- Allows co-borrower flexibility. All borrowers do not have to reside in the property. For example, parents, who won't be living in the home, can be co-borrowers on the loan to help their children qualify for a mortgage and purchase a home.
- Accepts additional income sources. Rental payments may be considered as another allowable income source to help qualify a buyer (i.e., rental payments from a basement apartment). Income limits may apply.
California HomeReady Loan Rates
For California borrowers, the HomeReady mortgage also has rates comparable to conventional mortgages and has cancellable mortgage insurance, unlike other low down payment mortgage options.
A HomeReady mortgage requires borrowers in California to complete an online homeownership education course to help prepare for the responsibilities of buying and owning a home.
Contact Home Point Financial today to learn more about the HomeReady program in California.