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  • Tel: (651) 552-3681
    Email: joe@joemetzler.com

  • HomeReady is a First Time Home Buyer Program available in MN, WI, SD.Only 3% Down Payment needed on a conventional loan.Lack of down payment money is the biggest hurdle for most first time home buyers. We eliminate that hurdle for low and moderate income buyers with the HomeReady Mortgage from Fannie Mae.

  • The Many HomeReady Mortgage Loan Benefits

    The biggest HomeReady program benefit is clearly the low 3% down payment requirement.

    Next is the flexible source of your down payment. It can be:

    • Your own money
    • Taken from your 401(k)or similar
    • Gift from a family member or employer
    • Combined with a down payment assistance program
    • Ability to consider non-applicant income sources to help you qualify
    • Less restrictive property condition guidelines compared FHA Loan
    • Homeready also waives standard "risk based pricing" which normally applied to your interest rate for loans above 80% loan-to-value AND a credit score of 680 and higher, and limits maximum risk based pricing adjustments. Together these two items keep HomeReady Mortgage Interest Rates affordable.

    You can potentially use other types of household income to help income qualify for the loan from a non-applicant.

    With HomeReady. you can potentially use other types of household income to help income qualify for the loan from a non-applicant. Income from a non-borrower household member, including a non-relative, can be considered as a compensating factor to allow a buyer to go from a maximum debt ratio of 45%, to a maximum debt ratio of 50% WITHOUT adding the other person to the actual loan. 

    For example: 

    • Maybe your elderly parents will be living in the home. We might be able to use their social security income to help you qualify.
    • Maybe your spouse has bad credit, but has a job. We might  be able to use their income too without them actually being on the loan application itself.
    • Thinking of renting out a room? Rental income from a single family home may be considered for qualifying

     Using non-borrower household member family income greatly extends mortgage and homeownership access to multi-generational families!

  • Do I Qualify For a HomeReady Mortgage Loan?

    All mortgage loans have a long list of qualifying guidelines. Therefore we suggest you don't try figuring it out on your own.  Rather, simply complete a full mortgage application, and let one of our expert licensed Loan Officers assist you.

    Click here to complete a full online HomeReady or Home Possible Mortgage Application, or call our Home Ready loan experts at (651) 552-3681 to complete an application over the phone, or to schedule an appointment in our St Paul, MN office.

  • Ideal HomeReady Borrowers

    • Have low to moderate income
    • Are first-time or repeat homebuyers
    • Have limited cash for down payment
    • Have a credit score ≥ 620; borrowers with credit scores ≥ 680 may get even better pricing
    • Have supplemental boarder or rental income
    • Are looking to purchase or refinance
  • Cancellable Mortgage Insurance*

    Unlike government-insured loans like FHA loans and USDA loans, with HomeReady, borrowers may have the option to cancel their mortgage insurance once their home equity reaches 20%. This can result in lower monthly payments down the road.

    *Consult with your Loan officer about how removing PMI (private mortgage insurance works).

  • HomeReady vs FHA

    BenefitHomeReadyFHA
    Downpayment 3% 3.5%
    Cancellable Mortgage Insurance Yes No
    Geographical restrictions on loan amount No Yes
  • What About Paying Loan Closing Costs?

    All mortgage loans have closing costs. Lender fees, appraisal, credit report, title company, county recording fees, state deed taxes, origination fees, initial homeowners insurance, and more.

    These costs need to be paid for by you the home buyer. The best way is always for the buyer to pay cash. But as most first time home buyers have limited funds, you are also allowed to roll the closing costs into the loan with "seller paid closing costs." You can also pay them by taking a slightly higher interest rate.

    Under these two options, you are still paying for the closing costs, but you are essentially paying over time versus having to need more cash out of pocket today. How cool is that?

  • First Time Home Buyer Education Classes Are Required

    Not all first time home buyer programs required home buyer education classes, but some, like HomeReady do. If you are also getting down payment assistance, then you will need a class also

    While we think these classes are beneficial to most new home buyers, before taking a class, contact us to determine if one is even needed. If you need a class for your loan, we will let you know. You can sign up for the required first time home buyer class in MN here.

    PRO TIP: Classes put on by Real Estate Agents do NOT count, and are really more of a sales gimmick to get you to use that agent.

  • Unacceptable Credit Items for First Time Home Buyers

    HomeReady, just like all other mortgage programs considers credit one of the most important aspects if deciding loan approval. Different mortgage loan programs have different credit criteria. You may qualify for one program, but not another. If you have any of the following items, HomeReady will not work for you.

    • Poor Credit (middle credit score BELOW 620)
    • Delinquent Government Debt (back taxes, student loans)
    • Large or multiple unpaid collection accounts
    • More than 2 late mortgage or rent payments in the past 12 months
    • Unpaid Tax Liens (must be paid off to buy)
    • Foreclosure less than 3-years old
    • Bankruptcy Chapter 7 less than 3-years old
    • Bankruptcy Chapter 13 less than 1-year old