HomePath ReadyBuyer™ Program



ReadyBuyer™ Program Benefits

  • 640 credit score required
  • Get 3% back for closing costs
  • Low 3% down payment
  • Mortgage insurance not required
  • No Home appraisal needed
  • C0-op and HUD Approved Condos waived in certain cases
  • Fixed-rate and adjustable-rate loan terms available
  • Investors can use the loan on up to 20 properties

HomePath down payments can be gifted or made via a grant or loan from a non-profit organization, state or local government, or employer.

ReadyBuyer Eligibility Requirements:

  • First-time home buyer (Not owned a home in last three years)
  • Must be primary residence within 60 days of closing
  • Must be a property listed on the HomePath website
  • HomePath Ready Buyer training course online program must be completed by the buyer.

For buyers looking for a great deal on a home, buying a foreclosed home is a very attractive option. You can jump onto the HUD home website and search for all the homes available in your location. You will need a real estate agent or broker in order to submit an offer on a HUD home.

Buyers who wish to purchase a foreclosed home now have more loan options than traditional financing and Government loans. The Fannie Mae HomePath mortgage program is a loan available for HUD properties.

ReadyBuyer Loans have No Mortgage Insurance

One of the great benefits is of the Home Path program is that (PMI) Private mortgage insurance is not required. They have low down payment requirements as well. For owner-occupied buyers, the down payment amount is just 3%; investors will have a 10% down payment requirement.

Get 3% Cash Back for Closing Costs

Fannie Mae provides assistance for the Ready Buyer program. The HomePath training course will need to be completed before the 3% assistance can be given. There are certain things that 3% in assistance can be used for:

  • Closing costs
  • Prepaid Expenses
  • Points
  • Homebuyer education course fee reimbursement

 See if you qualify for the ReadyBuyer program now

ReadyBuyer Loan Alternatives

Loan Type

Min Credit Score

Down Payment

Max DTI Ratio

Income Limit

FHA Loan

580

3.5%

43%-50%

NA

VA Loan

580-620

No down payment

50%

NA

USDA Loan

640

No down payment

50%

115% of area median income

203k Loan

640

3.5%

45%

NA

Conventional Loan

620

5% - 20%

43%

NA

HomeReady /Home Possible Loans

620

3%

50%

 80% of area median income

Conventional 97

680

3%

43%

NA

Home Possible and HomeReady Loans

The HomeReady and Home Possible loan programs are for first-time homebuyers who meet the income limits (income cannot exceed 100% of area median income).

You must be a first-time homebuyer with a 620 credit score and 3% down to qualify.

Home Possible / HomeReady Loan Benefits

 3% down payment

 Up to 50% DTI ratio 

• Alternate income sources accepted

• Fixed mortgage payments

• Low mortgage insurance premiums

 PMI not required once LTV ratio reaches 78%

FHA Loan

An FHA mortgage is a great option because the FHA downpayment requirement is 3.5%. FHA loans have less strict credit score requirements too; you can qualify for FHA loans with a 580 credit score.

You won’t get 3% back for closing costs, but the seller is allowed to pay up to 6% of the purchase price towards your closing costs; you can try to negotiate that in.

2020 FHA Loan Requirements

• 580 credit score with 3.5% down

 500-579 score with 10% down

 Maximum 50% debt-to-income ratio

• Two years of stable employment and income history

 For primary residence only

 24 month waiting period after a foreclosure or bankruptcy

1% of student loan debt added to DTI ratio

USDA Loan

The USDA loan program is designed for low-to-median income borrowers buying a home in the country’s rural areas. Borrowers need a 620 credit score, income cannot exceed 115% of the area median income, and the property must be in a USDA-eligible location.

USDA loans offer 100% financing, so no down payment is needed. They also have the lowest mortgage insurance premiums of any type of government-backed home loan.

2020 USDA Loan Requirements

• 640 minimum credit score

• Total household income less than 115% of the average in your area

• Maximum 43%-50% debt-to-income ratio

• Two years of stable employment history

• Occupy the property as your primary residence

• Prove of income (Two years of tax returns and W2's)

• Must be in an eligible rural area

• Work with an approved USDA lender

203k Loan

If you’re looking for a renovation loan, then a 203k loan is a perfect option. If the property needs minor repairs, then a streamline 203k loan will give you up to $35,000 to make repairs or upgrades.

A home that needs major repairs, then a standard 203k, will give you the cash to make the needed repairs.

2020 FHA 203k Loan Requirements

Minimum 620 credit score

24 month waiting period after a bankruptcy or foreclosure

 Maximum 43%-50% debt-to-income ratio

• For primary residence only

Fannie Mae First Look Guidelines

The Fannie Mae First Look Initiative was created to help homebuyers who intend to occupy the home as their primary residence. For the first 20 days, a new HUD foreclosed property becomes available on the HomePath website.

Only owner-occupied buyers are allowed to bid on a property. The First Look program allows buyers to purchase homes without competing against real estate investors.