HomeReady Mortgages now for Arizona


HomeReady MortgageTucson / Phoenix: Great news! Fannie Mae’s long awaited HomeReady™ mortgage program is now available to Arizona homebuyers. The HomeReady mortgage program replaces Fannie Mae’s My Community Mortgage, which was Fannie’s low-moderate income lending product. HomeReady not only replaces the MyCommunity, but is designed to help creditworthy borrowers afford a new home – which will help a lot of Arizona homebuyers. Read press release here: HomeReady Mortgage Program

“Purchasing your first home can be an overwhelming process,” said Jay Ryan, Vice President of REO Sales, Fannie Mae. “We developed the HomeReady Buyer program to provide first-time homebuyers with the knowledge to make informed decisions as they navigate the complexities of the home buying process. Closing cost assistance provides a cushion many first-time buyers need to more confidently face the financial responsibilities of homeownership.”

Some of the key features of HomeReady Mortgage Program

✅ Low down payment. Up to 97% financing for home purchase with many borrower flexibilities. 

✅ Flexible sources of funds can be used for the down payment and closing costs with no minimum contribution required from the borrower’s own funds (1-unit properties).

✅ Non-occupant borrowers allowed (max 95% LTV in DU®) – income is considered part of qualifying income and subject to applicable income limit.

HomeReady is designed to help low to middle income borrowers get into a home, much the same way as Fannie’s now retired MyCommunity program did. So there are income and property eligibilty guidelines within the program that must be met. You can look up the income and property eligibility restrictions by using Fannie Mae’s tool here: HomeReady Income Eligibility Lookup.

For some, HomeReady might be an alternative to FHA low downpayment financing option. How much of an alternative will depend on the borrowers unique situation. With this said, and for the first-time ever, income from a non-borrower can be considered in determining a borrower’s debt-to-income ratio.

Yes, you read that correctly. And that is big news in the financing world, as you might imagine. This is especially helpful for multi-generational and extended family households, especially for those living in a cities like Phoenix, Tucson and Flagstaff.

Multi-generational and extended households, which is more common in Arizona then you think, were often shut out of regular home fianancing, but now have an affordable mortgage program that they can actually turn to – and that is a game-changer in the home lending world.

How HomeReady is really different

Over the years, Fannie Mae has done extensive research on extended families and has discovered that these extended households tend to have stable incomes that often are more secure than regular, smaller households at similar income levels.

Other HomeReady guideline changes include the allowing of income from non-occupant borrowers, such as parent. And a big change is the allowing of rental payments, such as from a guest house or boarder to augment the borrower’s qualifying income. In the past, Fannie Mae did not allow income from those sources, so you can see how this program is a game-changer.

Key Features of HomeReady to help Arizona Homebuyers


HomeReady Mortgage Program
Borrower Income: Income eligibility aligned with housing goals requirements:

  • No income limits in low-income census tracts (median tract income <=80% of area median income [AMI])

  • No 100% of AMI in high-minority census tracts or designated disaster areas

  • No 80% of AMI in other tracts
Ownership of Other Property and Non- Occupant Borrowers Occupant borrower may not have an ownership interest in any other residential property at time of closing
Non-occupant borrowers are permitted (to max 95% LTV in DU; 90% LTV in manual); income considered as part of qualifying income. No limitation on ownership of other property for non- occupant borrower
Manufactured Housing (MH) In accordance with standard MH guidelines (DU only, max 95% LTV/CLTV, 7/1 and 10/1 ARMs only, no temporary buydowns), except limited to 1- unit principal residence transactions
Non-Borrower Household Income Permitted as a compensating factor in DU to allow a debt-to-income ratio greater than 45% up to 50% (non-borrower income is not considered qualifying income)
Boarder Income Permitted with documentation of at least 9 of the most recent 12 months (averaged over 12 months) up to 30% of qualifying income


Do we need Homebuyer Education Classes?

Fannie Mae has partnered with Framework®, a nonprofit created by the Housing Partnership Network and the Minnesota Homeownership Center, to offer homebuyers a homeownership education course that covers both the complexities of home buying and the responsibilities of owning a home. The course contains nine, thirty-minute sessions and is entirely online. Framework Course

If you have any questions on the new HomeReady™ Mortgage Program , or other home loan financing questions, then just give us a call. 520-303-5620

Joseph Small and his Team at Guild Mortgage Co. helps Tucson and Phoenix Homeowners and homebuyers with all their home mortgage loan needs. Give them a call today! Also proudly serving Sierra Vista, Green Valley, Sahuarita and Nogales Arizona.


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