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New HomeReady Program Helps Extended Families — and Friends — Buy a Home

Extended families or friends who live together and all contribute to the household income have had a challenge when trying to buy a home. One person might not have a credit score (or a too-low score). Or, they might not be able to document the down payment money.

For these good folks, the new HomeReady loan program comes to the rescue!

The HomeReady loan allows a non-borrowing person’s income to be considered. As long as this person lives in the home, his or her additional income allows the borrower to be approved with a higher debt-to-income ratio. (Up to 50% DTI) The non-borrower does not have a credit check at all.

This is not subprime lending. This is Fannie Mae recognizing that multi-generational families are stable and historically make their payments on time. HomeReady honors family tradition by making home ownership more attainable.

Facts About the HomeReady Loan Program

Need more information?

For other rules and guidelines, see your loan officer. If you are in Washington or California, I would love to help you. I am state licensed, NMLS 1284134. I work for Envoy Mortgage, a full service mortgage lender.

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