Fannie Mae today announced a new mortgage product called HomeReady, which it said is intended to expand access to affordable home loans for low- and moderate-income families. The loan will allow income from other household members, in addition to the borrower, to be included in the calculation of the loan’s debt-to-income ratio. It will also allow income from non-occupants, such as parents, to be counted, as well as prospective rental income, such as from a basement apartment.
“Fannie Mae’s research indicates that these extended households tend to have incomes that are as stable or more stable than other households at similar income levels, positioning them well for homeownership,” the company said. Borrowers will be required to complete a course on homeownership.
Fannie’s Desktop Underwriter platform will automatically flag borrowers potentially eligible for a HomeReady loan. The new product is expected to be available later this year, and Fannie will provide further details to sellers in the coming weeks.
