May 5th, 2016 | 1 STOP Mortgage Loan of the Week!
1 STOP Mortgage is excited to announce that we are pleased to offer one of the best Home Purchase loan products in Memphis and throughout Tennessee to arrive on the mortgage scene for years...the HomeReadyTM Mortgage.
Due to the many benefits of this loan program, look for our ongoing posts letting you know all that a HomeReadyTM Mortgage can do for you!
HomeReady™ is a mortgage program created in December 2015. It's backed by the U.S. government via Fannie Mae and
available via most U.S. lenders.
Via HomeReady™, households in lower-income neighborhoods and in minority-heavy areas can get easier access to low-downpayment mortgages at today's current interest rates.
HomeReady™ allows a downpayment of just 3% on a home and permits the "income pooling" for all of the members of a household. This means that income from grandparents, parents, relatives, and working children can all be used to help
qualify for a home loan.
For many families, this can mean the difference between getting approved for a loan and getting turned down.
HomeReady™ can also be used for a refinance, allowing up to 95% loan-to-value (LTV) in some cases.
In order to be eligible for the HomeReady™ program:
If you can meet these two criteria, you may be HomeReady™-eligible.
Is HomeReady™ for first-time home buyers only?
No, the HomeReady™ mortgage program can be used by first-time buyers and repeat buyers.
Do I need to have good credit to use the HomeReady™ program?
No, you do not need to have good credit to use HomeReady™. You don't even have to have average credit. The HomeReady™ mortgage program is available to homeowners whose mortgage credit score is at least 620.
I don't have a credit score. Can I still use the HomeReady™ program?
Yes, you can still use the HomeReady™ if your credit score is non-existent. The program allows the use of non-traditional tradelines to establish credit history, including utility bills, gym membership, and most other accounts which require monthly payment.
What are mortgage rates for the HomeReady™ loan?
Mortgage rates for a HomeReady™ mortgage loan are the same as mortgage rates for a "traditional" loan. There is no premium applied for using the HomeReady™ program. In fact, current mortgage rates may even be lower for HomeReady™ mortgages as compared to a 3% down program such as the Conventional 97.
Can my downpayment on a HomeReady™ home be a cash gift from a relative?
Yes, your downpayment on a HomeReady™ loan can be a cash gift from a relative, a spouse, a girlfriend or boyfriend, or a fiancé/fiancée. The money does not need to be yours.
What fixed-rate mortgage options do I have with the HomeReady™ program?
Borrowers using the HomeReady™ mortgage program have access to a complete mix of fixed-rate mortgage products, including the 10-year fixed-rate mortgage; the 15-year fixed-rate mortgage; the 20-year fixed-rate mortgage; and, the 30-year fixed-rate mortgage.
What adjustable-rate mortgage options do I have with the HomeReady™ program?
Borrowers using the HomeReady™ mortgage program have access to a complete mix of adjustable-rate mortgage (ARM) products, including the 5-year ARM; the 7-year ARM; and, the 10-year ARM.
My parents live with me. Can I use their income to help qualify for a mortgage?
Yes, this is the purpose of the HomeReady™ mortgage program. You are allowed to use the income of a person living in your home to help you qualify for your home loan.
If I use the income of somebody living in my house to help qualify for the HomeReady™ loan, does that person need to be on the mortgage application?
No, you do not need to include other people on your HomeReady™ mortgage application -- even if their income is used to help you qualify.
In order to use another person's income on your application, you will only need to show that person's proof of income and a signed statement indicating their intent to live with you for a period of at least 12 months.
Do I have to show a history of co-habitation in order to use a relative's income for my mortgage approval?
No, prior co-habitation is not required in order to use a relative's income on your HomeReady™ mortgage application. You're only required to show a signed statement which indicate your co-habitant's intent to live in your home for a period at least 12 months.