It’s called the HomeReady® loan, and they have gone out of their way to make it easier for more people to qualify, including allowing all the money to close to come from a gift, and using boarding income to qualify for the loan.
Here are some of the features that you may not know about.
- 97% Loan to Value – Up to 105% Combined Loan to Value – with eligible Community Second
- Gift, grants and Community Seconds can be used for down-payment and closing costs
- Borrower Minimum Contribution Requirements – None
- Gift funds
- Mattress money
- Flexible Income Limitations
- No income restrictions in low-income census tracts
- 100% of Area Median Income in all other census tracts
- Excellent Option for Extended Income Households – allowing non-borrowing household income to be used as a compensating factor (this income source is not counted against area median income limits)
- Allows Boarder Income to be used in qualifying
- Allows Non-Occupant co-borrowers to be used in qualifying (maximum Loan-to-Value reduced to 95%)
- Allows rental income to be used in qualifying from a one-unit primary residence with an accessory unit
- Allows reduced MI insurance of 25% (usually 30% for other types of loans)
- Allows Lender-Paid MI Insurance
- Permits the use of temporary buy downs
- Does not require the borrower to be a First-Time Homebuyer
- Can own residential investment property
- Cash on hand is an acceptable source of down payment and closing costs
- Allows for seller concessions of up to 3%
- 1-4 unit properties are eligible – restrictions apply
- Homebuyer counseling is required under certain circumstances.
I would love it if you would refer your buyers to me, especially those who have not been able to save money for their down payment or closing costs, or need to qualify using other income not normally allowed using other loan programs.