In an effort to accommodate low- and moderate-income households, Fannie Mae is reintroducing a service with a new name: HomeReady.
The New York Times reports the mortgage program, previously named MyCommunityMortgage, will begin in December. It has revised guidelines that will qualify borrowers to include income generated by non-borrowers living in the household. Also, borrowers can list non-occupant co-borrowers such as parents, and the program isn’t limited to first-time home buyers.
HomeReady can help people with high rents afford homes, like those that pay 30 to 40 percent of monthly income towards rent. Homeowners pay 15.1 percent, on average, towards rent each month.