HomeReady mortgage addresses common financial challenges and offers expanded eligibility guidelines, such as:

• Offering a 3% down payment* option. First-time and repeat homebuyers can purchase a home with a down payment as low as 3% of the purchase price.

• Allowing co-borrower flexibility. All borrowers do not have to reside in the property. For example, parents, who won’t be living in the home, can be co-borrowers on the loan to help their children qualify for a mortgage and purchase a home. Income limits may apply.

• Accepting additional income sources. Rental payments may be considered as another allowable income source to help qualify a buyer (i.e., rental payments from a basement apartment).

Homeownership Education Requirement

We believe quality homeownership education can help buyers prepare for the responsibilities of buying and owning a home. Buyers can complete an online homeownership course offered by  Framework® to fulfill the requirement*. If ALL borrowers who will occupy the home are first-time homebuyers, then at least one borrower must complete homeownership education regardless of the loan-to-value (LTV). One-on-one homeownership advising (e.g., through a HUD-approved counseling agency) may also be an option for buyers who could benefit from personalized assistance. If you seek one-on-one advising, speak with your lender beforehand to confirm that you’ll meet the HomeReady mortgage education requirement.

*In circumstances when an online format may not be the appropriate option for a potential home buyer an exception may be necessary.