Fannie Mae launched their affordable lending program almost a year ago, which allows both first-time and repeat home buyers to purchase a home with as little as 3% down on a mortgage. Now one year later, the GSE has announced changes to the HomeReady mortgage that broadens the options for home owners to qualify for the plan and makes it even easier for buyers to acquire. HousingWire reporter Brena Swanson presents the key changes to the plan:

  • Allowing the occupant borrower on a HomeReady loan to own other residential properties
  • Removing the requirement for home ownership education for limited cash-out refinance transactions
  • Eliminating the requirement for landlord education for HomeReady loans secured by two-, three, or four-unit properties (home ownership education is still required)
  • Deleting references to post-purchase early delinquency counseling requirements to align the post-purchase counseling requirements for all Fannie Mae conventional mortgage loan types as recently described in Servicing Guide Announcement SVC-2016-05
  • Accepting home ownership education from Community Seconds or Down Payment Assistance Program (DPAP) providers as long as the providers are HUD-approved counseling agencies and the first mortgage loan involves a Community Second or DPAP.
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