HomeReady Home Buyer Grants

By Aqualand Real Estate
February 1, 2024

Do You Qualify for a $2,500 Borrower Credit to Buy a Home?

Fannie Mae has announced a new home buyer grants program called HomeReady that can provide qualified buyers with a $2,500 Credit toward the purchase of a home. Grants are a type of down payment assistance, but without the usual strings attached. We’ve taken information from FNMA’s website to make the information more user-friendly. Keep in mind that you do NOT have to be a First-Time Home Buyer to qualify for this program!

This is a CREDIT, not a Loan that has to be paid back. There are specific income requirements based on where you are living currently (not the address of the home you want to buy.) We’re happy to help determine whether or not you qualify, just give us a call or send an Email. There is no cost or obligation whatsoever.

The financing allows just 3% Down, but Mortgage Insurance is NOT permanent as it is with FHA loans.

Borrower benefits

  • Low down payment
  • As low as 3% down payment for home purchase and refinance transactions.
  • Flexible sources of funds
  • Can be used for the down payment and closing costs with no minimum contribution required from the borrower’s own funds (1-unit).
  • Affordable and cancellable monthly MI
  • Reduced Mortgage Insurance coverage requirement above 90%
  • LTV; cancellable MI per Servicing Guide policy.
  • Homeownership education
  • Fannie Mae HomeView® helps pave the way for borrowers toward successful homeownership; other education and housing counseling options are available.

Want to Find Out If You Qualify?

Call or Email Branon Edwards at Aqualand Real Estate at 786-417-4910
or
Call or Email Charles King at Grass Roots Mortgage at 954-296-0098

Home Ready Program Features

  • A $2,500 purchase (VLIP) borrower credit* that can be used for down payment or closing costs, including mortgage insurance premiums.
  • Financing up to 97% loan-to-value (LTV) for purchase of one-unit principal
    residence**
  • Borrower is not required to be a first-time buyer.
  • Gifts, grants from lenders or other eligible entities, Community Seconds®, and
    cash-on-hand permitted as a source of funds for down payment and closing costs.
  • Supports HomeStyle® Energy, HomeStyle® Renovation, MH Advantage®, and
    manufactured housing.
  • Innovative underwriting flexibilities expand access to credit responsibly.
    Flexibilities include rental unit and boarder income, as well as non-occupant borrowers, such as parents.
  • An enhanced, best-efforts commitment with pricing similar to mandatory commitment for whole loan deliveries.
  • *For whole loans purchased on or after March 1, 2024 to February 28, 2025 and for loans delivered into mortgage MBS with issue dates on or after March 1, 2024 to February 1, 2025.
  • **(Desktop Underwriter® (DU®) is required for LTV ratios >95%); up to 95% LTV for limited cash-out refi (LCOR) and up to 97% LTV for LCOR transactions in DU when the mortgage being refinanced is owned or guaranteed by Fannie Mae.

Want to Find Out If You Qualify?

Call or Email Branon Edwards at Aqualand Real Estate at 786-417-4910
or
Call or Email Charles King at Grass Roots Mortgage at 954-296-0098

You Don’t Have to Be A First-Time Home Buyer to Qualify

However, when all occupying borrowers on a HomeReady purchase transaction are first-time homebuyers, at least one borrower must complete a course from a qualified provider,* regardless of LTV (see exceptions below).

HomeView can be used to satisfy the homeownership education requirement.

Exceptions: For HomeReady loans that involve a Community Seconds or down payment assistance program, buyers may instead complete the homeownership education course or counseling required by the Community Seconds or down payment assistance program as long as it is provided by a HUD-approved agency and completed prior to closing.

In addition, the presence of a disability, lack of internet access, and other issues may indicate that a consumer is better served through other education modes (for example, in-person classroom education or via a telephone conference call).

Want to Find Out If You Qualify?

Call or Email Branon Edwards at Aqualand Real Estate at 786-417-4910
or
Call or Email Charles King at Grass Roots Mortgage at 954-296-0098

If you don’t know how much money you might qualify for to purchase a home, reach out to Charles King for a Free Mortgage PreQualification today. If you already have a PreQual from another lender, Charles may actually be able to beat their interest rate and their fees.

Ready to Start Your Home Search?

Here’s an overview of the Home Buying Process to take some of the mystery out of getting started. We also have an extensive Real Estate Glossary that will help you understand some of the industry terms and jargon that get thrown around so often on the internet.

When you’re ready, Contact Us to set up a Free Personalized Home Search that will let you know what’s out there right now plus alert you whenever new properties come onto the market in your target neighborhood and price range. As always, there is no obligation or cost to set up Home Search Alerts.

More information is also available at Fannie Mae: fanniemae.com/homeready