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Home Ready purchase loan program at 3% down payment in Fontana, who offers that

November 16th, 2018 2:10 PM by Nathan Rufty

HomeReady Program in Fontana


HomeReady Mortgage in Fontana is a loan program offers by Fannie Mae, it’s designed for Fontana home buyers who don’t fall into typical lending approval guidelines. If you have a low down payment, need to use income from a household member who’s not on the loan, need to have a co-signer, or need to use income from renting out a room in the home you’re buying, the HomeReady mortgage by Fannie Mae might be right for you.

HomeReady Mortgage in Fontana

HomeReady Mortgage Benefits for Fontana Borrowers:

HomeReady serves low-to-moderate-income borrowers, with expanded eligibility for financing homes low-income communities.

  • HomeReady features pricing that is better than or equal to standard loan pricing.
  • Lower than standard MI coverage requirements for loans with LTVs greater than 90 percent up to 97
  • percent.
  • Cancellable monthly MI payments (per Servicing Guide policy; generally upon borrower request when
  • the loan balance drops below 80 percent LTV, or automatically when it drops below 78 percent).
  • Gifts, grants, and Community Seconds® can be used as a source of funds for down payment and closing costs, with no minimum contribution required from the borrower’s own funds (1-unit properties). Any eligible loan may have more than one Community Seconds (i.e., third lien) up to the maximum 105% CLTV. Cash-on-hand can also be used for down payment and closing costs (1-unit properties).

Income Eligibility Requirements for home buyers in Fontana

  • HomeReady income eligibility requirements were simplified to 100% of area median income (AMI) or no income limit (for low-income census tracts).
  • On the HomeReady page, the Income Eligibility Lookup tool provides lenders and other housing professionals with a quick and easy way to determine potential borrower eligibility. Simply use the tool to look up census tract income eligibility by property address or by Federal Information Processing Standards (FIPS) code. In addition, maps posted on the HomeReady page provide state-by-state eligibility snapshots. 
  • Eligibility by census tract is shown in the Income Eligibility by Census Tract Lookup, and income eligibility is identified in Desktop Underwriter® (DU®).

What are the MI coverage requirements for HomeReady in Fontana?

Standard MI coverage is required on HomeReady loans with LTV ratios at or below 90 percent, and 25 percent coverage is required for LTV ratios exceeding 90 percent, which is lower than Fannie Mae’s standard MI coverage levels of 30 percent for LTV ratios of 90.01–95.00 percent and 35 percent for LTV ratios of 95.01–97.00 percent that apply to most loans.

The MI coverage levels for HomeReady were specifically designed to work in conjunction with the use of the lender’s standard base guaranty fee and the loan-level price adjustment (LLPA) structure with certain waivers and caps.

Who Offers HomeReady Mortgage in Fontana, California?

Nathan Rufty is an experienced loan officer that specializes in HomeReady Mortgages in Fontana, please feel free to give him a call at 909-503-5600.

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