HomeReady Mortgage Program

Mortgage Options, Inc. is proud to offer Fannie Mae’s newest mortgage loan, the HomeReady loan. This program expands our portfolio of mortgages and allows even more people to purchase a home. We’re excited to help home buyers and real estate agents understand and take advantage of the HomeReady loan program. 

HomeReady for Homebuyers 

At Mortgage Options Inc., we’re excited to offer the HomeReady loan program to new homebuyers across the states of North Carolina and South Carolina. Fannie Mae’s HomeReady mortgage loan was created to help meet the diverse needs of today’s home buyers. Individuals who may not have been eligible for a mortgage previously due to low or moderate income now have expanded eligibility and can include other sources of income when applying for a loan. Below are a few example scenarios of when a HomeReady loan could work for you.

Scenario 1: Accessory Unit Income

A couple is purchasing a 1-unit property that has a separate apartment built over the garage, which includes a functioning kitchen and bathroom. They have a tenant who has already executed a lease agreement to rent the property after purchase. This rental income from the accessory unit can be included as part of the borrower’s income and help secure the loan amount.

Scenario 2: Boarder Income

A single man plans to purchase a new home. He has had a roommate sharing living quarters with him for the past 12 months, and the roommate plans to live in the newly purchased home. This boarder income can be taken into account when applying for the loan to help secure the loan amount.

Scenario 3: Extended Income Household

A single woman with children is looking to buy a larger home, so her father can move in with her. Her father has monthly income and, although he will not pay rent to his daughter, he may contribute to household expenses periodically. The father’s income is not considered as qualifying income, but existence of the father’s income is considered the compensating factor that allows the borrower to secure a higher loan amount.

Scenario 4: Non-Occupant Borrower Income Flexibility

A young couple is buying their first home, and his mother would like to help. She is willing and able to be a borrower on the mortgage loan, but she will not live in the home. Because the borrower’s mother will be an actual borrower on the mortgage loan, her income and liabilities are considered from a qualifying perspective and will be included in the combined debt-to-income (DTI) ratio.

As you can see, HomeReady mortgages offer extended loan options for the way we live today. If you are looking to buy a home in 2016, contact Mortgage Options Inc. We’re happy to guide you through the process of finding a mortgage that works for you and getting you one step closer to the dream of homeownership. Whether HomeReady is the program for you or one of our many other mortgage loan options, we’re here to help! 

HomeReady – What Realtors Need to Know 

For real estate agents, the HomeReady mortgage by Fannie Mae is a fantastic option for low- to moderate-income families that previously would not have been approved for a mortgage due to a high DTI ratio. The HomeReady option allows borrowers to include renters, other family members or non-resident borrowers on the loan to increase the allowable DTI. This opens up homeownership to a whole new set of people whose income may have prevented homeownership in the past. DTIs are increased by taking into account “extended-income households” or EIHs, households with accessory unit income or boarder income, or non-occupant borrower income. Loans are available for up to 97% financing and there is no minimum borrower contribution. Homeownership education through a simple online course is required for HomeReady loans.

Would you like to learn more about HomeReady? Mortgage Options Inc. is holding a FREE seminar followed by cocktails on March 23^rd, 2016 at Lexington's Old Mill, 711 E Main St, Lexington, SC from 4:30-6pm. Register here to attend. We look forward to seeing you there!

Whether you are a real estate agent or a home buyer, if you’re looking for the best mortgage options in South Carolina and North Carolina, Mortgage Options, Inc. is here to help! Call us today at 803-732-5787!