HomeReady® mortgage is getting even better. Among several enhancements detailed in the July 26 Selling Guide Announcement (SEL-2016-06), we’ve simplified some HomeReady requirements and added more homeownership education and advising options to empower HomeReady buyers for smart homeownership.
Simplifying the requirements. HomeReady will no longer require homeownership education for refinances nor will it require landlord education for two- to four-unit properties.
Expanding options to meet consumer needs. We’re providing additional flexibility to meet the homeownership education requirement for borrowers using Community Seconds® or down payment assistance programs, and for borrowers who receive one-on-one assistance from independent, professional homeownership advisors (also known as housing counselors).
Deepening our commitment to sustainable homeownership. Later this year, we will introduce incentives for lenders to encourage more borrowers to take advantage of independent professional homeownership advisors. We will allow one-on-one assistance as a compensating factor in Desktop Underwriter® (DU®) to allow a debt-to-income (DTI) ratio higher than 45%, up to 50%, and we’ll give lenders a $500 LLPA credit at delivery (effective in a future DU release).
We’re making other HomeReady changes, including allowing home buyers to own other residential property. You can find details in the Selling Guide Announcement (SEL-2016-06), and please visit the HomeReady page to check out our updated resources. I look forward to talking with you about how HomeReady can help you reach new markets and expand access to credit responsibly.
TMC - Chief Operating Officer