Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
subscribe to our newsletter

Fannie Mae launches lower income mortgage

US-based mortgage giant Fannie Mae has unveiled a new lending option aimed at helping borrowers with lower and moderate incomes access an affordable and sustainable mortgage.

HomeReady will assist borrowers in identifying eligible loans and create a simple and certain process for lenders, according to the group.

“HomeReady will help qualified borrowers access the benefits of homeownership with competitive pricing and sustainable monthly payments,” Fannie Mae vice president for underwriting and pricing analytics, Jonathan Lawless, said.

Advertisement
Advertisement

“We are also confident this mortgage option will create business opportunities for lenders serving the changing demographics and borrower needs seen in today’s market. The combination of our risk management safeguards and an innovative online education tool will put HomeReady borrowers in a strong position to succeed in homeownership.”

Fannie Mae said its HomeReady pricing is “favourable and simplified for lender use and eliminates or caps standard loan level price adjustments”.

The new lending option allows income from a non-borrower household member to be considered in determining an applicable debt-to-income ratio for the loan.

The move is in response to recent Fannie Mae research that showed extended households tend to have incomes that are as stable as, or more stable, than other households at similar income levels.

HomeReady will be available to borrowers at any income level for properties in designated low-income census areas, and to borrowers at or below 100 per cent of area median income (AMI) for properties in high-minority census areas or designated natural disaster zones.

For properties in remaining census areas, HomeReady borrowers must have an income at or below 80 per cent of AMI.

HomeReady will replace Fannie Mae’s MyCommunityMortgage. Fannie Mae confirmed that later this year it will provide online tools to help lenders determine specific income guidelines for HomeReady in their areas.

Fannie Mae launches lower income mortgage
mortgagebusiness

Latest News

The federal government has committed an additional $130 billion in support to protect jobs threatened by the economic fallout from the cor...

New government-led interventions in the housing market in response to the coronavirus outbreak are set to further hinder transaction activit...

The number of owners withdrawing their property from auction soared to 40 per cent last week, following the introduction of a ban on auction...

FROM THE WEB
podcast

LATEST PODCAST: Further relief for SMEs and borrowers

Do you think Australia will move to quantitative easing this year?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.