Changes coming to Home Ready

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Fannie Mae has a great loan product called Home Ready. Potential home buyers can qualify even if not a first time home buyer. The blog covered the details of Home Ready in the past. Check out those posts:

One aspect to pay attention to is the income limit. To qualify for Home Ready, a potential buyer’s income can’t exceed 100% of the area median income (AMI) for the area. There are also some areas with no income limits. These areas are determined from the census track (where household income and people are counted in geographic areas).

Here is a handy website where one can look up a property to see about qualifying income limits:

https://homeready-eligibility.fanniemae.com/homeready/

Starting July 20, 2019, Fannie Mae will implement changes to the program. Gone are the no income limit areas. Another change is the qualifying income reduces from 100% of the AMI to 80%. What does this mean:

  • some metro Atlanta areas have no income limits, so a buyer could have an income of $200,000 and still use Home Ready. After July 20th, that will no longer be the case.
  • If an AMI is $80,000, the qualifying income will be now $64,000 (80% of the AMI) instead of the $80,000.

It seems Home Ready is narrowing the pool of potential buyers who can use the program. If you are looking to use Home Ready, talk to your loan officer to see if these changes could impact your home search.

Looking to buy in the state of Georgia, if so, contact me today. We can get you ready to make an offer on a new home in minutes, and see if Home Ready is a program you could take advantage of with your home purchase.

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3 Responses to “Changes coming to Home Ready”

  1. The mysterious case of home ownership | The Mortgage Blog Says:

    […] Professional, Honest Mortgage Advice from Dunwoody Mortgage Services « Changes coming to Home Ready […]

  2. Types of Mortgages – Conventional | The Mortgage Blog Says:

    […] take a look at conventional mortgage details.  (Click here to review FHA loan details.  And here is a link to the Home Ready program […]

  3. Real Estate Rockstars Says:

    I really believe that a foreclosed can have a important effect on the client’s life. Real estate foreclosures can have a 7 to a decade negative influence on a debtor’s credit report. A new borrower who have applied for a home loan or virtually any loans even, knows that a worse credit rating is actually, the more challenging it is to have a decent mortgage. In addition, it might affect the borrower’s power to find a respectable place to lease or rent, if that turns into the alternative real estate solution. Interesting blog post.

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