Skip to Content?


Fannie Mae offers a new mortgage program for purchasers having difficulties getting into the housing market

Fannie Mae offers new mortgage program
By Michele Lerner
January 6

A new opportunity for home ownership is available to credit-worthy low- to moderate-income borrowers through Fannie Mae’s new HomeReadymortgage program.

The financing, available for purchase loans and refinancing, loosens some requirements that have kept consumers out of the housing market or limited their option to refinance. The loans are available with a down payment of 3 percent or 5 percent and have reduced private mortgage insurance costs. Gift funds are allowed for the down payment, and lenders and sellers are allowed to help with closing costs.

An innovative feature of the program is that the income from non-borrowers can be counted as part of the debt-to-income ratio, which compares all monthly minimum payments to your monthly gross income.

[Lenders offer new options for first-time and credit-challenged homebuyers]

Other loans only allow borrowers’ income to be considered, but this program recognizes that many households include extended family who contribute to the housing payment even when they are not the homeowners. In some cases, borrowers can include income from non-occupant borrowers, such as their parents.

Other fees will be lower on these loans. For example, borrowers who have a credit score of 680 or higher won’t pay any extra fees or a higher interest rate, unlike typical loans that require a bigger payment for borrowers with a credit score below 740.

All borrowers will be required to take a home-buyer education course. The loans are limited by income in some areas but waived in low-income areas.

Contact a lender to discuss your mortgage requirements to see if you are eligible for a HomeReady loan.

Michele Lerner is a freelance writer. To pass on a tip or news item, contact us at and put “Town Square” in the subject line.


Contact Information

More Info

Call 413-527-8660 For A Free Consultation!

Southampton, MA
124 College Highway
Southampton, MA 01073

Business Hours
Mon - Fri 9am - 5pm

Springfield, MA
73 Chestnut Street
Springfield, MA 01103

Accepted Payments

Recent News & Articles

View All

Congratulations to Frank Flannery on a huge win!!!

Jeffrey Lovell found not guilty of manslaughter in fatal shooting of teen mistaken for burglar

Elder Care Matters Q&A: How Often Should You Update Your Will or Estate Plan?

Today’s Elder Care Matters Q&A provides guidance regarding how often you should update your Will or Estate Plan Question: How Often[...]

Attorney Frank Flannery selected to the 2016 Massachusetts Super Lawyers List!

Super Lawyers 2016We are thrilled to announce that Attorney Francis E. Flannery has[...]

Bipartisan group calls for universal long term care insurance plans

Jayne O'Donnell, USA TODAY3 p.m. EST February 22, 2016 The long-term care costs for our aging population are growing so fast[...]

An interesting article for those of us with family businesses…

For family business owner, ‘what next’ requires careful planning By: Joshua S. Miller January 26, 2016 Many a successful business owner has[...]