Benefits of a Home Ready Mortgage
Home buying is at a 60 year low. The millennial market represents a huge market in purchasing power, however they are postponing home ownership due to student loan debt, travel experiences, and no money being able to be put aside. In an effort to create a new program that caters to this kind of homeowner, enter the Home Ready mortgage. This is specifically designed for these kind of situations where you can take common sense underwriting, and implement it into the loan process. Here is how the program works, and the benefits of the using this to purchase your first home, or even a move up home if you like. This is not restricted to a first time home buyer.
- Can use income from non-borrower household member with increased debt to income ratios from 45-50%
- You can use boarder income and rental income with a signed lease
- You can use a roommates rent to help you qualify
- Up to 97% loan to value
- Not required to be a first time homebuyer
- Cancelleable Mortgage Insurance which is also reduced to 25% up to 97% loan to value
- Gift for down payment allowed, as well as GRANT
- Non traditional credit allowed –Alternative lines like cable bill and electricity okay.
- Manufactured Housing up to 95% loan to value.
There is no income limitations if the home is bought in an are which has low to moderate income. Here is a direct link to the guidelines from Fannie Mae. Working with a Colorado Mortgage lender will ensure that your not only given the most loan options, but will ensure your experience is handled at a local level, with professionals who have their eyes on the pulse of the market, with great new programs like this.