Fannie Mae announced that it has changed income maximums and some eligibility criteria for its HomeReady mortgage program that it believes will allow more borrowers to qualify for a mortgage with as low as a 3 percent down payment.

In a statement, Fannie Mae says that it will continue to evolve the program as well in helping to “expand access to credit responsibly and promote successful home ownership.”

Fannie Mae detailed the following changes in a recent statement:

• Borrowers who occupy the home will now be allowed to own other residential properties as well.
• Fannie Mae has increased income limits to 100 percent of an area’s median income in all areas, except low-income market tracts that will have no limit. Fannie officials say this will make it easier for lenders to determine eligibility for the program and help more buyers take advantage of the mortgage program.
• Fannie Mae is offering more counseling options and will now accept one-on-one pre-purchase advising from HUD-approved providers to meet HomeReady’s home ownership education requirement. Fannie Mae plans to soon offer lenders a $500 credit to urge borrowers to take advantage of a more personalized support option in fulfilling their education requirement.

Source: Fannie Mae and “Fannie Mae Upgrades 3 Percent Down Mortgage Program,” Mortgage News Daily (July 27, 2016)

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