Umpqua Bank has just rolled out the Fannie Mae HomeReady product - which has undoubtedly solved many issues faced by potential homeowners. The HomeReady product is advantageous for borrowers who have relatives or non-relatives living in the home, who will not be associated with the loan, but would like to leverage their income to qualify for a HomeReady loan.
- 10/15/20/30-year fixed-rate mortgages and 5/1, 7/1, and 10/1 ARMs available.
- 1-unit principal residence, including eligible condos, co-ops, PUDs, and manufactured housing or 2- to 4-unit principal residence (no condos, co-ops, or manufactured housing).
- Minimum down payment: 3%
- 5% minimum borrower contribution no longer applies. Gifts, grants, Community Seconds and Cash on Hand may be used for entire down payment, closing costs and prepaids.
- Minimum credit score: 620
- May have accessory dwelling units: Rental income may be considered in qualifying the borrower per rental income guidelines.
- No income limits in low-income census tracts.
- Non-borrower household income may be used (relative or non-relatives). Income must total at least 30% of the total monthly qualifying income being used by the borrower(s). (Note: Income from more than one non-borrower household member may be considered.)
- 25% MI coverage for LTVs 90.01-97% and standard MI coverage for LTVs of 90% or less.
For more information, feel free to reach out: