Home Loans California & Arizona

Phoenix AZ Fannie Mae’s HomeReady is designed to help lenders confidently serve today’s market of creditworthy, low- to moderate-income borrowers, with expanded eligibility for financing homes in low-income communities. HomeReady loan program in Phoenix Arizona also offers reduced MI coverage on loans > 90% LTV and a waiver of LLPA’s on loans with LTV >80% and credit score = 680.


Phoenix AZ HomeReady loan program Features

  • Low down payment with up to 97% LTV financing for home purchases
  • CLTV up to 105% for loans with eligible Community Seconds®
  • Up to *97% Refinance available
  • Owner occupied (allows for non-occupying co-borrowers)
  • 2-4 unit, manufactured homes, condos, PUD eligible
  • 100% gift funds for single family properties and no reserves
  • Flexible sources of funds with no minimum contribution requirement from borrower’s own funds (1-unit properties)
  • Follow DU for reserves, DTI documentation
  • Available for repeat buyers and buyers that own other properties
  • Homeownership education required for all purchase transactions
  • Available for borrower’s with minimal or no credit

HomeReady Phoenix AZ Borrower Requirements

  • Requirements with LTV, CLTV, or HCLTV Ratios of 95.01% – 97%.
  • One-unit principal residence. All borrowers must occupy the property.
  • Non-occupant borrowers permitted to maximum 95% LTV in DU.
  • Unexpired government issued ID’s and social security number are required for each Borrower.
  • Land Home Financial Services Inc. will process a third-party social security number validation required for all Borrowers.
  • Maximum number of 4 borrowers, including accommodation mortgagors.
  • Income considered as part of qualifying income and subject to income limits.
  • Occupant and non-occupant borrower(s) may have an ownership interest in other residential property at the time of closing.

HomeReady Phoenix AZ Credit Requirements:

  • 620 FICO Requirement
  • No mortgage lates 0x60
  • Prior loss mitigation: 4 years prior to application date
  • Foreclosure History: 7 years
  • Chapter 7: 4 years from discharge date
  • Chapter 13: 2 years from discharge date
  • Current year IRS taxes due:
  • Land Home Financial Services, Inc. will run Undisclosed Debt Monitoring (UDM) prior to closing. Any new inquiries and/or debt must be documented.
  • DU will determine qualifying ratios.

HomeReady Phoenix AZ Income Requirements:

  • No income limits in low-income census tracts
  • 100% of area median income (AMI) in high minority census tracts or designated disaster areas
  • 80% of AMI in all other census tracts
  • Effective with new case files submitted to DU on or after the weekend of July 20, 2019, LHFS is aligning with Fannie Mae’s updates to HomeReady Income Eligibility limits and requiring all HomeReady loans to not exceed 80% AMI for the property’s location, including properties in low-income census tracts.
  • Income Eligibility Summary by State
  • Income Eligibility Maps
  • Based on the census tract and borrower income, DU will notify users when a loan case file appears to be eligible for HomeReady but the lender has not underwritten the loan case file as HomeReady. Resubmit the loan case file as a HomeReady loan to obtain the appropriate HomeReady messaging. The Additional Data screen field will allow entering census tract information if DU is unable to geocode the property address.
  • Rental income received from a relative requires a documented 12-month payment history of rents.
  • Amended tax returns are only acceptable for documented errors or omissions.
  • Paystubs and W-2’s may not be substituted with a written verification of employment. 

Are you ready to get qualified for a HomeReady Home Loan Program in Phoenix Arizona? Call Nathan Rufty at (623) 850-1210.
Posted by Nathan Rufty on September 25th, 2019 1:49 PM

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