December 15th, 2017
There is a new program available from several lenders called HomeReady 1% for first time home buyers.
This unique program is offered by Fannie Mae through it’s preferred lenders and allows for first time home buyers to purchase a home with very little money out of pocket.
As a result, HomeReady requires a 3% downpayment from the home buyer, but several lenders are making a 2% contribution for the down payment, allowing the home buyer to only come to the table with 1%.
The best part is that the 2% that the lender is contributing for the down payment is not a second loan and has no strings attached.
In addition, a few key points that you need to be aware of:
First of all, use the link in the button to check if the property is eligible for the HomeReady program.
Pay special attention to the income limit, some areas have it, some do not. Just make sure your income is eligible.
Income Limit: The income limit a borrower must not exceed to be potentially eligible for HomeReady within that census tract. Note: In low-income census tracts, the Income Limit will read “No Income Limit.”
AMI: HomeReady area median income.
Eligibility: Either 100% of AMI or no income limit for low-income census tracts.
City/County, State: City or county and state where the property is located.
Additional restrictions apply to transactions with LTV, CLTV, or HCLTV ratios of 95.01 — 97%.
In conclusion, if you are a first time home buyer with not much money for a downpayment, this might just be the mortgage program for you.