HomeReady mortgages are conventional home loans from Fannie Mae.  These are meant to help low to moderate income borrowers buy or refinance a home.  Not only do they reduce the typical down-typical and mortgage insurance requirements, but these programs are more flexible in allowing down-payment assistance from other people.

Fannie Mae's purpose in these programs is to allow access to credit to those who may not normally qualify while educating them and promoting responsible homeownership.  In addition to down-payment assistance, HomeReady loans allow co-borrowers who do not necessarily have to live in the residence.  If there is no one to co-borrow, Fannie Mae will also consider anyone who lives with the borrower as a compensating factor when it comes to your debt-to-income ratio if it is slightly high.

There are also the following benefits:

• The borrower does not have to be a first-time home buyer
• Risk-based price adjustments that can affect your interest rates are limited or waived
• No income limit for properties in low-income areas
• Max DTI ratio up to 50% with the completion of a short online homebuyer education course - the borrower must participate in a short homeownership course