813.910.8020 Apply Now

Mortgage Broker Tampa, FL | Mortgage Lender Tampa Florida | Marimark Mortgage

  • Home
  • Homebuyers
  • Homeowners
  • Realtors
  • Investors
  • About Marimark
  • Contact Us
  • Mortgages
  • Apply Now
  • Current Mortgage Rates
  • Calculators
  • Testimonials
  • Blog
  • Videos
  • Featured In

HomeReady Mortgage

HomeReady MortgageThe HomeReady mortgage is a home loan financed through the Federal National Mortgage Association (Fannie Mae). These loans specifically target low-and moderate-income (LMI) borrowers who can afford mortgage payments but might struggle to fund a sizable down payment.

Another aspect of these mortgage products is that they encourage loans for homes in “designated low-income, minority, and disaster-impacted communities.” Additionally, these loans offer low rates when compared to other programs.

Not being able to afford a down payment is one of the most common barriers to homeownership. This program helps to address this by accepting as little as 3% down. That’s less than an FHA loan down payment of 3.5%.

On top of this, the HomeReady mortgage allows borrowers to accept grants, gifts, and even small loans to cover closing costs or down payments. With income from any member of the household qualifying for the loan, many say this is the most accessible mortgage available on the market.

Who is the HomeReady Mortgage for?

The HomeReady mortgage addresses the most common reasons that interfere with homeownership. The most apparent barrier was 20% down payments. In addition, many young adults struggle to save with the cost of living, high rents, and student loans.

Launched in 2015, HomeReady addresses this by offering more expansive eligibility guidelines. These include allowing first-time and repeat home buyers the opportunity to buy with as little as 3% of the home value.

Another aspect of these loans is “income pooling.” This program allows other occupants in the home to use their income as part of the application, including parents or relatives. These extra income streams could be enough to get a loan approved, making it a very welcome benefit.

Additionally, there is flexibility for co-borrowers. While these loans are only available if the borrower doesn’t own another home, co-borrowers (such as a parent) can join to help their children qualify for the mortgage. However, income limits apply.

Finally, the HomeReady mortgage will also accept additional income sources, such as rental income from a 1-unit property and broader income from those who have lived at the property for 12 months.

Related: 38% of Renters Can Afford to Buy a Home

What are the Borrower Criteria for a HomeReady Mortgage?

A HomeReady loan is one of the most flexible mortgages on the market. The borrower criteria are reasonably broad and include:

Income Limits

The borrower’s income should be below the area median income (AMI) to qualify for a HomeReady mortgage; however, there are exceptions to this rule based on the property’s location.

Credit

A HomeReady loan allows for non-traditional credit, with credit scores as low as 620 permitted.

Related: 6 Simple Ways to Raise Your FICO Credit Score

First-Time Buyers

First-time buyers are welcome to apply to the program; however, they do not receive any special benefits.

Occupancy or Ownership of Other Properties

Only single-unit and owner-occupied primary residences are allowed under the HomeReady mortgage. However, occupants (alongside non-occupant borrowers) can have ownership of another property at the time of closing.

Property Type

Homes covered under these loans are:

  • Single-family homes comprised of one- to four units.
  • Condos.
  • Townhomes.
  • Planned unit developments.
  • Manufactured housing that meets MH Advantage requirements.

Who Qualifies for A HomeReady Loan?

To qualify for a HomeReady loan, borrowers must meet three main criteria:

#1 Credit Score of over 620

HomeReady is available to people with lower incomes; however, they will still require a minimum credit score of 620. More conventional mortgages generally require a higher credit score, so these levels represent an exciting opportunity for many prospective home buyers.

Additionally, buyers can use alternative credit, such as rent and utilities, to meet this threshold in some cases.

#2 Number of Financed Properties

Limits apply to the number of financed properties a borrower may have and qualify for a HomeReady mortgage. Consult your mortgage broker for details if you have financed multiple properties.

#3 Mandatory Homeownership Education Courses

Another interesting feature of the HomeReady mortgage is that it mandates attendance at homeownership courses. These courses prepare borrowers for the financial challenge of owning a home. Available online, they require 4-6 hours of participation.

Conclusion

HomeReady mortgages are an excellent opportunity for those with lower or medium incomes to buy a home. The 3% down payment directly addressed the most commonly cited barrier to homeownership. These mortgage programs also make it easy for parents or relatives to gift or loan money required for a downpayment. Additionally, they are compatible with many deposit assistance programs.

The Interest rates for a HomeReady mortgage are the same as other traditional loans. However, with no premium attached rate, these mortgages are one of the easiest for which to qualify. Borrowers can access a HomeReady adjustable-rate mortgage and lock in a rate for five, seven, or ten years. Current interest rates are at record lows, making these mortgage products very attractive.

Marimark Mortgage

Marimark Mortgage is based in Tampa, Florida, and serves the mortgage needs of homebuyers, homeowners, and investors in Florida, Virginia, and Pennsylvania.

We specialize in mortgages for first-time homebuyers, conventional home mortgages, refinance loans, reverse mortgages, and FHA, VA, and USDA mortgage options. We’ve worked extensively with cash-out refinancing and help clients to lower their monthly mortgage payments.

To get started with a mortgage to buy your next home, please fill out our Quick Mortgage Application or contact us.

Opt In Image
Stay Informed, It's Your Money
Marimark Mortgage Newsletter

The Marimark Mortgage Newsletter will keep you informed with important events in the mortgage industry that could impact your finances.

We especially focus on ways to save money on your current and future mortgages. And, we continually share the information we share with our clients, because we believe informed consumers are the best consumers.

Real estate agents, and other professionals in the industry, will receive an ongoing wealth of information that will help them serve their clients.

Thank you for signing up!

Save with a Mortgage from Marimark

Whether you are buying a home or refinancing, you can save with a mortgage from Marimark Mortgage!

    Search

    Post Categories

    Testimonials

    Refinancing with Mary an absolute pleasure

     
    Refinancing with Mary has been an absolute pleasure. I have never been through the process before and she took the time to explain each step. She was prompt (had a rate locked in right away) and most importantly always answered the phone or emails almost immediately! The communication line alone made the refinancing process every bit worth it. Would recommend to anyone, and will be back for any future purchases! Bret Brennan, March 2021
    See More Reviews
    Marimark Mortgage LLC
    5327 Primrose Lake Circle
    Tampa, FL 33647-1328
    (813) 910-8020
    (866) 910-8020

    Accessibility
    Privacy Policy
    Terms of Service
    Sitemap

    Reviews

    Website Testimonials
    Google Reviews
    Zillow Reviews
    Trulia Reviews
    Facebook Reviews
    Yelp Reviews
    BBB A+ Rating

    FOLLOW US

    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    Marimark Mortgage is a BBB A+ Accredited Business

    Recent Posts

    • FHA Announced a 30-Basis Point Reduction to Annual Mortgage Insurance Premiums
    • How Can You Improve Your Credit Score?
    • Historical Mortgage Rates From The 1970s
    • What You Need to Know About Mortgage Forbearance
    • Top Tips to Save Money for a Down Payment

    © 2023 Marimark Mortgage, LLC All Rights Reserved. | Internet Marketing by Image Building Media. | RSS Feed

    Reviews / Recommendations: Google, Zillow, Trulia, LinkedIn, Facebook, Yelp, BBB

    Licensed in Florida by the Office of Financial Regulation, Mortgage Lender License #MLD77.
    Licensed in Virginia by the Virginia State Corporation Commission, License MC#4556.
    Licensed in Pennsylvania by the Department of Banking and Securities, License #40222.
    NMLS#248318 – www.nmlsconsumeraccess.org.