Home Loans California & Arizona

Avondale AZ HomeReady® is an affordable, low down payment mortgage product designed for creditworthy low-income borrowers. The HomeReady and Home Possible mortgages are conventional, Agency affordable lending mortgage programs designed for creditworthy, low- to moderate income borrowers. These loan programs provide expanded eligibility for financing a primary residence in designated low-income, minority, and/or disaster-impacted communities.

Loans originated using general loan limits and high-cost area loan limits (i.e., high balance mortgage loans) are eligible under the HomeReady and Home Possible mortgage loan program. Loans originated using general loan limits only are eligible under the Home Possible mortgage loan programs. All HomeReady mortgage loans originated using general loan limits must be underwritten with Fannie Mae’s Desktop Underwriter® (DU®) or be traditionally (i.e.,non-AUS) underwritten. All high-balance HomeReady mortgage loans must be underwritten with Fannie Mae’s DU. All DU processed HomeReady loans must receive a DU “Approve/Eligible” or an acceptable “Approve/Ineligible” recommendation. 

Avondale AZ HomeReady benefits

  • Low down payment; as little as 3% down for home purchases
  • Flexible sources of funds with no minimum contribution from borrower’s own funds
  • Non-occupant borrowers permitted
  • Cancellable mortgage insurance (restrictions apply)
  • Reduced MI coverage requirement for loan-to-value ratios above 90% (up to 97%)
  • Pricing is better than or equal to Fannie Mae’s standard loan pricing (risk-based pricing waivers
  • for LTV ratios > 80% with a credit score = 680)

Avondale AZ HomeReady Home Loan Acceptable Assets

  • Personal gifts, gifts or grants from a qualified entity, employer assistance
  • Community Seconds
  • Minimum borrower contribution from own funds MUST be met before other acceptable sources of funds are permitted
  • Cash-on-Hand- Cash on hand is an acceptable source of funds for the borrower’s down payment and/or funds for closing costs and/or prepaid items on
  • purchase transactions of 1 unit properties.
  • The borrower customarily uses cash for expenses, and the amount of funds saved is consistent with the borrower’s previous payment practices.
  • Funds for the down payment and closing costs must exist in a financial institution account or an acceptable escrow account. Funds must be on deposit at the time of application, or no less than 30 days prior to closing.
  • The cash on hand is not borrowed and could have been saved by the Borrower.
  • The credit report does not show more than three Trade lines for the Borrower.
  • The updated credit report and other verifications should indicate limited or no use of credit and limited or no depository relationship between the borrower and a financial institution.
  • Sweat equity is allowed, if the following conditions are met: The mortgage is originated under a specific lending program. The lending program is
  • managed by a strong, experienced nonprofit organization. When sweat equity is accepted toward the down payment, the borrower must contribute at least 3% from his or her own funds. For one unit properties, a minimum down payment of 5% is required – 2% sweat equity and maximum LTV ratio of 95%. For two to four unit properties, refer to the table above.

If you are ready to get qualified for your a HomeReady Home Loan in the city of Avondale AZ please call Nathan Rufty at (623) 850-1210.
Posted by Nathan Rufty on September 18th, 2019 2:06 PM
The HomeReady™ Mortgage in Buckeye AZ (HomeReady) program helps lenders serve today’s market of creditworthy, low- and moderate-income (LMI) borrowers, and encourages the financing of homes in designated low-income, minority,15 and disaster-impacted communities. HomeReady offers high loan-to-value (LTV) ratio financing to help homebuyers who would otherwise qualify for a mortgage but may not have the resources for a larger down payment. HomeReady mortgages offer low rates, minimal risk-based price adjustments compared to other programs, and reduced mortgage insurance costs. 

Buckeye AZ borrower income must be below 100% of the area median income (AMI), with some exceptions based on the property’s location. There is no income limit on properties in low-income
census tracts.

HomeReady allows for nontraditional credit. Credit scores as low as 620 are permitted. This limit is revised annually. For manual underwriting, there is a minimum credit score of 660 for one-unit properties and a credit score minimum of 680 for two- to four-unit properties. Risk-based pricing is waived in some instances based on credit score. Fannie Mae also uses trended data in its credit risk assessment including those loans submitted through Desktop Underwriter®. Trended credit data provides expanded information on a borrower’s revolving account credit history including whether the borrower pays off the balance each month or makes the minimum payment due, and whether the borrower exceeds the credit limit.  

The HomeReady™ Mortgage program may allow community banks to expand their customer base by serving more low- and moderate-income borrowers, low- and moderate-income census tracts, high-minority census tracts, and designated disaster areas. HomeReady may help community banks access the secondary market, providing greater liquidity to enhance their lending volume. Loans originated through HomeReady may receive favor able consideration under the CRA because the program is targeted for use in LMI communities or by LMI borrowers.

Buckeye AZ HomeReady Loan Program Benefits

  • Low down payment options; up to 97% of your mortgage can be financed
  • No minimum borrower contributions; this allows you to use qualified grants, monetary gifts, and more for your down payment, and closing funds
  • No first-time homebuyer requirement; even if you’ve owned a home in the past, you may still qualify
  • No income limits for properties in low income census tracts, 100% of average median income (AMI) in high minority census tracts, and 80% of AMI in all other properties
  • Rental income can be considered for qualifying for the loan

Buckeye AZ HomeReady loan program Criteria
  • Loan limits: FHFA publishes Fannie Mae’s conforming loan limits annually. See Resources for a link to the current limits.
  • Loan-to-value limits: Up to 97% LTV allowed. Use of Desktop Underwriter® is required for LTVs greater than 95%.
  • Adjustable-rate mortgages: The following ARMs are allowed: 5/1 with 2/2/5 caps only, and 7/1 and 10/1 with caps that vary according to Fannie Mae’s standard ARM matrix.
  • Down payment sources: Allowable sources include gifts, grants, Community Seconds®,16 and cash on hand. There is no minimum requirement from the borrower’s own funds.
  • Homeownership counseling: Comprehensive homeownership education is required for all borrowers through an online course provided by Framework®, a HUD-approved social enterprise run by the 
  • Housing Partnership Network. Borrowers will invest four to six hours (average) of their time and a fee of $75 (paid to Framework®) to learn the fundamentals of buying and owning a home, take an online test, and receive a certificate of completion. To promote further sustainability, borrowers will have access to post-purchase homeownership support for the life of the loan through Framework’s® homeownership advisor service. Alternatively, some borrowers can meet the education requirement by attending customized one-on-one counseling by a HUD-approved counseling agency.
  • Lenders can receive a $500 loan-level price adjustment credit where HomeReady borrowers have attended approved counseling services before entering into a sales contract. See How to Fulfill the Homeownership Education Requirement for HomeReady® Mortgage in Resources for more details. 
  • Loan-level price adjustments: Loan-level price adjustments are risk-based pricing adjustments that apply at the time of delivery only. Standard risk-based pricing is waived for HomeReady loans with LTVs less than 80% and a credit score of 680 or greater. A risk based, loan-level price adjustment cap of 150 basis points applies for loans outside of these parameters.
  • Mortgage insurance: HomeReady features a reduced mortgage insurance coverage requirement for loans above 90% LTV. Mortgage insurance is cancellable.
Posted by Nathan Rufty on September 11th, 2019 2:40 PM
HomeReady™ in Goodyear Arizona is a Fannie Mae loan program that is designed to extend the privileges of home ownership to buyers with limited household incomes. You may be able to buy a home with little or no money out of your pocket by using gift funds provided by your family members.

The Fannie Mae HomeReady Mortgage Program enables borrowers with limited financial resources and non-traditional sources of income to buy a home with a low down payment.  The program was created to address the increase in the number of households with extended-family living arrangements such as cases where home buyers live with relatives.

The HomeReady program is offered by Fannie Mae through participating lenders.  In short, Fannie Mae is a government-sponsored enterprise that develops mortgage programs and provides capital to lenders.  From the borrower’s standpoint, the involvement of Fannie Mae is less important because you interact with the lender, not Fannie Mae, when you apply for a HomeReady mortgage.

Key benefits of the program include a low down payment requirement and the ability to use alternate income sources to qualify for the mortgage or afford a larger loan.  Potential drawbacks include a higher interest rate as well as borrower income and loan limits.

Also unlike government-backed low or no down payment mortgage programs such as the FHA, VA and USDA programs, the HomeReady program does not require borrowers to pay an up-front mortgage insurance fee.  Eliminating the up-front mortgage insurance fee potentially removes thousands of dollars in closing costs, making it more affordable to buy a home.  In addition to not requiring an upfront mortgage insurance fee, the ongoing monthly private mortgage insurance (PMI) cost for a HomeReady mortgage may be lower than the monthly PMI fee for a standard mortgage or the mortgage insurance premium (MIP) for an FHA loan, depending on your credit score and loan-to-value (LTV) ratio.  Additionally, PMI is removed when your LTV ratio falls below 78% whereas borrowers are required to pay FHA MIP over the entirety of their mortgage.

homeready goodyear az

Goodyear Az Borrowers should understand both the positives and negatives of a HomeReady mortgage to determine if it is the right program for them.  We review the full list of the pros and cons for the HomeReady Mortgage Program below.

HomeReady loan program in Goodyear AZ financing up to 97% loan-to-value (LTV) for purchase of one-unit principal residence in Goodyear AZ (Desktop Underwriter® (DU®) is required for LTV ratios >95%); up to 95% LTV for limited cash-out refi (LCOR) and up to 97% LTV for LCOR transactions in DU when the mortgage being refinanced is owned or guaranteed by Fannie Mae:

  • Borrower is not required to be a first-time buyer
  • Cancellable mortgage insurance (restrictions apply); lower MI coverage (25% for LTVs >90% to 97%) compared with standard requirements 
  • Gifts, grants, Community Seconds®, and cash-on-hand permitted as a source of funds for down payment and closing costs 
  • Supports HomeStyle® Energy, manufactured housing, and HomeStyle® Renovation
  • Innovative underwriting flexibilities expand access to credit responsibly. Flexibilities include rental unit and boarder income, as well as non-occupant borrowers, such as parents.

Goodyear AZ HomeReady Borrowers Benefits:

  • Low down payment: As low as 3% down payment for home purchase and refinance transactions.
  • Flexible sources of funds: Can be used for the down payment and closing costs with no minimum contribution required from the borrower’s own funds (1-unit).
  • Affordable and cancellable monthly MI: Reduced MI coverage requirement above 90% LTV; cancellable MI per Servicing Guide policy.
  • Homeownership education: The online Framework® course prepares borrowers for sustainable homeownership; other education and housing counseling options are available.
Posted by Nathan Rufty on September 4th, 2019 11:34 AM
homeready home loans glendale az

Fannie Mae is on a mission to make home buying easier in Glendale AZ. With its new HomeReady mortgage, the giant mortgage backer looks to help first time home buyers and repeat buyers alike. This new mortgage program is laser-focused on helping minorities, Millennials, and mixed families on their road to homeownership. 

HomeReady allows borrowers to make a low down payment as little as 3%, either for a home buying or refinancing transaction. Borrowers are also entitled to use a flexible source of funds for both the down payment and closing costs. HomeReady does not require a minimum contribution to come from the borrower’s own source of funds. 

Because HomeReady allows borrowers to make a small down payment, they are required to purchase mortgage insurance, which is a premium that will be added into mortgage payments. HomeReady’s mortgage insurance is affordable and under certain circumstances, it is cancellable. Generally, in order to eliminate mortgage insurance, a borrower’s loan-to-value (LTV) ratio must be above 90%. However, this ratio and restrictions can vary from lender to lender.

What are HomeReady’s borrower benefits in Glendale Arizona?

  • HomeReady serves low-income borrowers.
  • 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% up to 97%.
  • Cancellable monthly MI payments (per Servicing Guide policy; generally upon borrower request when the loan
  • balance drops below 80% LTV, or automatically when it drops below 78%).
  • Innovative underwriting flexibilities, including rental unit and boarder income, expand access to credit responsibly.
  • 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).

What are the income eligibility requirements for HomeReady borrowers in Glendale AZ?

  • Effective July 20, 2019, the income limit for all HomeReady loans is 80% of area median income (AMI) for the property’s location, including properties in 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. Eligibility by census tract is shown in the Income Eligibility by Census Tract Lookup, and income eligibility is identified in Desktop Underwriter® (DU®).

How can lenders determine income eligibility for HomeReady?

For loan case files underwritten through DU, income eligibility is determined based on the area median income of the subject property data, or FIPS code provided on the loan application. A field on the Additional Data screen in the Desktop Originator® (DO®)/DU User Interface gives lenders the ability to enter census tract information if DU is unable to standardize the property address. When the subject address cannot be standardized, and a census tract cannot be determined, but the state and zip code are provided, DU will use the AMI for the county associated to the center location of the zip code provided to estimate HomeReady eligibility. If the subject property is not located in the county identified, the user must provide the complete property address or a complete/updated FIPS code on the loan application and resubmit the loan case file to DU. DU will then use the information provided to determine the census tract or county.

When determining whether a mortgage is eligible under the borrower income limits, lenders must count the income from any borrowers listed on the mortgage note whose income is considered in evaluating creditworthiness for the mortgage loan.
Posted by Nathan Rufty on August 28th, 2019 2:06 PM
Fannie Mae launched a new First Time Home Buyer program called HomeReady designed to encourage home ownership in Peoria AZ. For those clients looking for larger properties or that have higher credit scores, HomeReady is an excellent choice. As a home buyer, our team will provide you with all the tools and a customized analysis to ensure you are getting the best loan program at competitive rates to suit your needs. We are dedicated to you – the home buyer – and to the principle that all transactions should be on time and as agreed. 

HomeReady mortgages provide the greatest benefit to people who plan to share the costs of the loan with other family members. Most mortgage lenders base their approval process solely on the borrower's personal income. For HomeReady loans, Fannie Mae permits non-occupant co-borrowers to add their financial support to the process. This means that parents or relatives can help boost a borrower's chances of securing approval for a mortgage, even if they don't plan on living in the purchased property.

Even if you don't have any co-borrowers, the HomeReady loan will count the contribution of people living with you as compensating factors. While their incomes won't be added to yours in the approval process, they can help you secure approval in situations where your debt-to-income ratio is higher than normal. This includes not only immediate family members but also roommates and boarders who can prove that they've been with you for at least one year. If your new home has any detached living units like a basement apartment, you can also propose to find a tenant and add the estimated rent as part of your income in the application.

Peoria AZ HomeReady Home Loan Benefits:

  • Lowers down payment and credit score requirements
  • Allows you to accept larger gifts in down payment and closing
  • Reduces mortgage insurance and allows you to cancel at 80% LTV
  • Permits family or friends to co-sign on your home loan
  • Income from others in your house can help you get approved

While it is less difficult to get a HomeReady loan than a more traditional loan it is also important to understand all the requirements and responsibilities that come with buying a Peoria AZ  home. Here are some common concerns and questions for HomeReady Mortgages:

How does a HomeReady mortgage make it easier to qualify?
Why Should I Own Rather Than Rent?
Home Much Can I Borrow

How does HomeReady mortgage make it easier to qualify?
The most notable difference is that HomeReady uses flexible rules to determine applicants’ debt-to income ration. The HomeReady 

program’s requirements are more flexible in whose income may be included in your mortgage application– For instance, you may be able to rely on income:

from another adult living with you, like an adult child, who also contributes to the income in the household
Family and friends who might be helping you pay the mortgage, but don’t live with you
rental income from leasing a basement apartment to help pay the mortgage?

Why Should I Own Rather Than Rent?
Homeownership has many benefits. Some of them include having a home where you can do whatever you want with it — paint it, decorate it, you name it! Besides making it your home, there are other benefits related to your home purchase loan. You may, for example, be able to claim income tax deductions for interest payments under your mortgage. Plus, by making regular monthly payment under an amortizing loan, you will build up your own equity, and not your landlords.

How Much Can I Borrow
Most loan programs require that your total debt be less than 45% of your gross monthly income. That percentage includes the new mortgage payments, any car loans, student loans, credit card, and any other debt you have occurred. It does not include expenses like cable bills, utilities, gym memberships and such. However, HomeReady does have flexible debt to income guidelines. If you have a history of paying your bills on time, then you may qualify for higher debt to income ratios up to 50% of your income.

You also need to think personally how much debt you can live with. Take time to determine how much debt you prefer to manage and if it is an amount you can one day pay off.
Posted by Nathan Rufty on August 22nd, 2019 5:59 PM



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