Homebridge is updating our HomeReady program guidelines to align with the updates made by Fannie Mae detailed in Announcement 2019-03 issued April 3, 2019.
Mortgage Insurance – Combining HomeReady and HomeStyle
Fannie Mae requires the more restrictive guideline be applied when a borrower combines HomeReady and HomeStyle. Fannie Mae has made an exception for MI and will allow the borrower to use the lower coverage levels eligible on HomeReady (previously the higher HomeStyle MI coverage levels applied)
Multiple Financed Properties
The maximum number of financed properties a borrower may own is now limited to two (2), including the subject (previously no limit).
NOTE: Any financed properties owned by a non-occupant borrower are not required to be included in the property count.
Fannie Mae clarified when boarder income is used for qualifying the boarder may not have an ownership interest in the subject property (currently Fannie Mae policy only states the boarder may not be obligated on the mortgage)
The MI policy may be applied to new submissions and loans currently in the pipeline.
The multiple financed properties and the policy under boarder income will be released in DU in a future release at which time the policy will apply. Homebridge will notify brokers once Fannie Mae issues a date for the DU release.
The HomeReady guidelines have been updated with this information and posted on the Homebridge website at www.homebridgewholesale.com
If you have any questions, please contact your Account Executive.