FANNIE MAE | HomeReady®
What does Fannie Mae do?
As the leading source of residential mortgage credit in the U.S. secondary market, Fannie Mae is supporting today’s economic recovery and laying the foundation for a better housing finance system.
Financing Opportunities for HomePath Homes
Fannie Mae has combined affordable financing options with their real estate owned (REO) properties helping buying find homes within their budget. Targeted at first-time homebuyers to help low to moderate incomes.
3% towards closing costs is possible once a home buyer education course is taken. Once the course is complete attach your HomePath Ready Buyer course completion certificate with the initial offer on a HomePath property.
Fannie Mae reserves the right to end the promotion at any time. Any dispute over this program shall be resolved by Fannie Mae in its sole discretion.
Fannie Mae provides home loan products designed to benefit sustainable homeownership such as;
- Low Down Payment and Flexible Sources of Funds.
- Conventional home financing with private mortgage insurance (PMI) that, unlike many government-insured loans, may be eligible for cancellation when home equity reaches 20%.
- Homeownership education helps buyers get ready to buy a home and be prepared for the responsibilities of homeownership.
- Innovative underwriting flexibilities, including income from a rental unit or boarder, can help buyers qualify.
- Home Improvement costs included in the mortgage.
Financing options Fannie Mae offers include:
Move-in Ready: HomeReady® | HFA Preferred ™
Fixer-Upper: HomeStyle® Renovation | HomeStyle® Energy Loan
Buyer Assistance: HomePath Ready | Community Seconds® | HFA Preferred Incentive Program
FREDDIE MAC | Home Possible®
The Freddie Mac Home Possible® mortgage offers more options and credit flexibilities to assist very low-to-moderate-income borrowers to obtain homeownership
Down payment requirement of as little as 3 percent, Home Possible now offers more options to responsibly increase homeownership for more borrowers. Co-borrowers who do not live in the home can be included for a borrower’s one-unit residence, borrowers are permitted to own other properties, and more!
Home Possible is designed to meet the needs of:
First-time homebuyers, move-up borrowers, and retirees.
Families in low-income census tracts.
Very low, low and moderate-income borrowers.
- Purchase and no cash-out refinancing.
- Maximum 97 percent LTV
- Sweat equity allowed for the entire amount of down payment and closing costs.
- Mortgage insurance options.
- Loan Product Advisor® or manual underwriting.
- No reserves required for 1-unit properties for manually underwritten mortgages.
- Maximum credit fee in price of 1.5 percent, with no credit fee in price on many loans.
- Stable monthly payments with fixed-rate mortgages.
- Flexible sources of funds, including sweat equity for the entire down payment.
- Reduced mortgage insurance coverage levels for LTV ratios greater than 90 percent.
- Minimum down payment of 3 percent allowed.
- At least one borrower must occupy the mortgaged premises as a primary residence.
- Non-occupant borrowers are permitted on mortgages secured by 1-unit properties when the LTV/TLTV/HTLTV ratio is less than or
equal to 95 percent for Loan Product Advisor mortgages. (TLTV 105 percent with Affordable Seconds). See Guide Section 4501.7
for non-occupant borrower requirements.
- The borrower must meet income limits. Loan Product Advisor will indicate income eligibility. For non-Loan Product Advisor
mortgages, use the Home Possible Income & Property Eligibility tool on FreddieMac.com.