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Dan the loanman

New HomeReady Loan Program

Tuesday, October 6, 2015 - Article by: Dan the loanman - ArcStone Financial Services - Message

Some good news on this new loan program by Fannie Mae....

Fannie Mae released details regarding its HomeReady mortgage in Selling Guide Announcement SEL-2015-10. This program will replace "MyCommunityMortgage." The announcement specifies a general income limit of 80% of area median income (AMI). Eligibility is also provided for properties located in low-income census tracts with no borrower income limits, and up to 100% of AMI for properties located in high minority census tracts or designated disaster areas. The requirement that at least one borrower must be a first-time home buyer has been removed for one-unit principal residence loans with LTV ratios greater than 95% up to 97% that are underwritten through Desktop Underwriter. Non-borrower household income from a family member is permitted as a compensating factor to support a higher debt-to-income (DTI) ratio. In addition, non-occupant borrowers are permitted for qualifying purposes. Standard mortgage insurance is required on loans with LTV ratios at or below 90%, and 25% coverage is required for loans with LTV ratios above 90% to 97%. The Minimum Mortgage Insurance Coverage Option may be used with HomeReady loans, but the waiver or cap of LLPAs does not apply to the LLPA for that option. Though lenders have the option of manually underwriting the loans for now, DU is expected to be ready to accommodate files the weekend of December 12. Delivery of loans cannot take place before December 21.Source: Fannie Mae

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